U.S. Sanctions Russian Hacking Firm Operation Zero for Cryptocurrency-Funded Theft of Confidential Software

Odaily News The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has announced sanctions against Russian cybersecurity firm Operation Zero and its head, Sergey Sergeyevich Zelenyuk. The sanctions are based on allegations that the company funded commercial secret theft activities targeting the United States through cryptocurrency. The sanctions also include five other related individuals, who are accused of using cyberattack tools to endanger U.S. national security.

This action stems from an investigation by the U.S. Department of Justice last year. An Australian citizen, Peter Williams, has admitted to stealing proprietary software from the U.S. defense contractor where he worked and handing over the secrets to Operation Zero in exchange for millions of dollars worth of crypto assets as payment. Williams has pleaded guilty to two counts of trade secret theft.

The U.S. Treasury stated that Operation Zero is primarily engaged in the trade of exploit tools, which can leverage software vulnerabilities to gain unauthorized access, steal data, or control devices. The company also pays rewards to individuals who carry out attacks through a bounty mechanism. Treasury Secretary Scott Bessent stated that if anyone steals U.S. trade secrets, the U.S. government will hold them accountable and will continue to protect sensitive technology and national security.