U.S. Treasury Department for the first time uses PAIPA sanctions against zero-day exploit broker networks

CoinWorld.net, February 26 — The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated a Russian hacking network and its associated individuals and entities under the Protect American Intellectual Property Act (PAIPA) and related executive orders. The network is operated by Sergey Sergeyevich Zelenyuk and his company Matrix LLC (Operation Zero). It is accused of using cryptocurrency to purchase and resell at least eight proprietary cyberattack tools stolen from a U.S. company, intended solely for use by the U.S. government and its allies. Australian citizen Peter Williams has pleaded guilty to stealing trade secrets between 2022 and 2025 and selling the aforementioned tools to Operation Zero in exchange for millions of dollars in cryptocurrency. Assets of the sanctioned parties within the U.S. will be frozen, and U.S. persons are generally prohibited from transacting with them. Violations may result in civil or criminal penalties.