Matrix LLC, known as Operation Zero, its owner Sergey Sergeyevich Zelenyuk, and five affiliates were designated on Tuesday under the Protecting American Intellectual Property Act, the U.S. Treasury Department press release said.
KEY FACTS
- Designation Matrix LLC, owner Sergey Zelenyuk, and five affiliates sanctioned under PAIPA
- Allegation Bought stolen zero day exploits and sold them to unauthorized users
- Origin Company operates as Operation Zero and is headquartered in St. Petersburg
- First use PAIPA used for the first time since enactment
The designations freeze any U.S. held assets of the listed entities and make transactions with them subject to potential secondary sanctions or other enforcement actions.
Peter Williams, a 39 year old Australian and former general manager of Trenchant at L3Harris, was sentenced to 87 months in prison after pleading guilty to stealing eight zero day exploits and selling them to Operation Zero for about $1.3 million in cryptocurrency.
Among the exploits acquired were at least eight proprietary cyber tools created for the exclusive use of the U.S. government and allied intelligence agencies that were stolen from a U.S. company and sold to at least one unauthorized user.
The actions also target a UAE front company named Special Technology Services LLC a second exploit brokerage called Advance Security Solutions and two individuals with prior ties to Operation Zero including a suspected Trickbot affiliate.
Operation Zero offers large bounties for exploits targeting commonly used software including U.S built operating systems and encrypted messaging applications and lists the Russian government among its clients while stating it sells exploits only to Russian private and government organizations.
WHY IT MATTERS
The designation is the first use of PAIPA and aims to disrupt a market for stolen government cyber tools while signalling increased U.S. enforcement of intellectual property theft in cyber operations.