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Treasury reports that millions in cryptocurrency financed tools to exploit U.S. software in newly imposed sanctions.
An Australian citizen has reportedly sold cyber tools intended for the U.S. government and its partners to a Russian firm called Operation Zero.
The U.S. Department of the Treasury has imposed sanctions on a business that acquired stolen American technology through digital currencies. (Jesse Hamilton/CoinDesk)
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Key points:
- The U.S. Department of the Treasury has sanctioned a Russian firm and the individuals linked to it for engaging in transactions involving stolen technology purchased with significant amounts of cryptocurrency.
- This technology was developed by a defense contractor for the U.S. government, with an employee of the contractor allegedly stealing it and selling it to Operation Zero, the subject of the recent sanctions.
The U.S. Treasury Department has placed sanctions on the Russian entity, Operation Zero, along with the individuals involved, after alleging they purchased stolen cyber tools for millions in cryptocurrency and subsequently re-sold those technologies intended for U.S. government use.
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The tools traded by the newly sanctioned Sergey Sergeyevich Zelenyuk and his company, Operation Zero, were reportedly initially pilfered by an Australian citizen, Peter Williams, who had previously worked for the defense contractor that developed the national-security software “for the exclusive use of the U.S. government and select allies.” Williams admitted guilt last year to charges of selling trade secrets.
“Treasury will continue to collaborate with the rest of the Trump Administration to protect sensitive American intellectual property and ensure our national security,” stated Secretary of the Treasury Scott Bessent in a declaration.
Zelenyuk and the others are purported to be the first individuals to face sanctions under the Protecting American Intellectual Property Act. The sanctions enforced by the Office of Foreign Assets Control prevent U.S. individuals from engaging in any business activities with those designated or with entities associated with them. “Operation Zero has aimed to enlist hackers to aid its operations and establish business connections with foreign intelligence agencies through social media,” the Treasury Department stated in its announcement. The allegations indicate that the tools were marketed to those attempting to exploit weaknesses in software systems.
Although the Treasury’s Office of Foreign Assets Control claimed that cryptocurrencies were utilized in these transactions, it did not specify particular addresses for blacklisting.
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