Crypto Millions Finance Sale of Stolen US Trade Secrets, Treasury Says

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Crypto Millions Finance Sale of Stolen US Trade Secrets, Treasury Says

The U.S. Treasury Department has imposed sanctions on a group of Russian hackers who allegedly stole and sold American trade secrets and government cyber tools in exchange for cryptocurrency. This is the first time a specific law protecting intellectual property has been used to address growing threats to national security.

Treasury Sanctions Crypto-Funded Exploit Ring Trading Stolen US Cyber Tools

On February 24th, the U.S. Treasury Department announced sanctions against a network of Russian hackers who steal and sell digital exploits. The Office of Foreign Assets Control (OFAC) specifically targeted Sergey Zelenyuk, his company Matrix LLC (also known as Operation Zero), and five of his associates. These actions were taken under the Protecting American Intellectual Property Act (PAIPA).

The Treasury Department called this a groundbreaking step, the first time the Protecting American Intellectual Property Act has been used. According to Treasury Secretary Scott Bessent,

“If you steal U.S. trade secrets, we will hold you accountable.”

He stated that the Treasury Department will keep collaborating with the Trump Administration to protect valuable American inventions and ensure the country’s safety.

The department detailed: “Among the exploits that Operation Zero acquired were at least eight proprietary cyber tools, which were created for the exclusive use of the U.S. government and select allies and which were stolen from a U.S. company.” Officials also noted: “Williams stole several proprietary cyber tools from the company between 2022 and 2025 and sold them to Operation Zero in exchange for millions of dollars paid in cryptocurrencies.”

This situation occurs while the Justice Department and FBI are investigating Peter Williams, an Australian citizen. He admitted guilt on October 29th to stealing trade secrets on two separate occasions.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) added several individuals and entities to its sanctions list due to cyber activities that pose a risk to U.S. security and the economy. These actions were taken under existing executive orders. At the same time, the State Department sanctioned individuals and companies, including Zelenyuk, Operation Zero, and Special Technology Services LLC FZ, using a new law called PAIPA – the first time this law has been used for sanctions. Others sanctioned include Marina Vasanovich, Azizjon Mamashoyev, and Oleg Kucherov, as well as Advance Security Solutions. As a result, any assets these parties have in the U.S. are frozen, and Americans are generally barred from doing business with them. Violating these rules could lead to fines or criminal charges.

FAQ 🧭

  • Why did Treasury sanction Operation Zero and its affiliates?
    They were accused of acquiring and trafficking stolen U.S. government cyber tools, threatening national security and economic stability.
  • How do the sanctions affect U.S. investors and companies?
    U.S. persons are generally prohibited from transacting with the designated parties, with assets subject to blocking and penalties for violations.
  • What role did cryptocurrencies play in the case?
    Authorities said stolen cyber tools were sold to Operation Zero for millions of dollars paid in cryptocurrencies.
  • Why is this action significant under PAIPA?
    It marks the first designations under the Protecting American Intellectual Property Act.

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2026-02-26 06:57