The United States has imposed sanctions on a Russian exploit broker and related entities for acquiring and selling stolen American cyber tools. This action is the first under a new law aimed at safeguarding US intellectual property. The sanctions target Russian national Sergey Sergeyevich Zelenyuk and his company, Operation Zero.
The Department of State announced the sanctions under the Protecting American Intellectual Property Act (PAIPA). This move is in response to the theft of trade secrets from US individuals. Treasury sanctions also support these designations. Principal Deputy Spokesperson Tommy Pigott emphasized the serious threat posed by theft of trade secrets to US national security and economic well-being.
In a parallel move, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated Zelenyuk and Matrix LLC, known as Operation Zero, along with five associated individuals and entities. Zelenyuk and Operation Zero are involved in trading “exploits” – code pieces that exploit software vulnerabilities for unauthorized access. They acquired eight proprietary cyber tools meant exclusively for the US government and allies, which were stolen and sold to unauthorized users.
Treasury Secretary Scott Bessent warned that those who steal US trade secrets will be held accountable. The sanctions come amid an investigation into Peter Williams, an Australian national who admitted to stealing cyber tools and selling them to Operation Zero. Williams, a former employee of a US company, pleaded guilty to theft of trade secrets between 2022 and 2025.
