U.S. sanctions Russian hacking company Operation Zero for cryptocurrency funding of stolen proprietary software

Odaily Planet Daily reports that the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions against Russian cybersecurity company Operation Zero and its leader Sergey Sergeyevich Zelenyuk, accusing the company of funding cyber theft activities targeting U.S. business secrets through cryptocurrency. The sanctions also target five other individuals involved, alleging they used cyber attack tools to threaten U.S. national security.

The action stems from a U.S. Department of Justice investigation last year. Australian citizen Peter Williams admitted to stealing proprietary software from his employer, a U.S. defense contractor, and delivering the confidential information to Operation Zero in exchange for millions of dollars in cryptocurrency. Williams has pleaded guilty to two counts of commercial espionage.

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