U.S. Sanctions Russian Operation Zero for Buying Stolen L3Harris Zero-Days

U.S. Treasury sanctioned Matrix LLC (Operation Zero) and owner Sergey Zelenyuk for IP theft. First PAIPA enforcement targets Russian broker purchasing 8 stolen exploits from Peter Williams. Sanctions freeze U.S. assets prohibiting American transactions.

St. Petersburg broker serves Russian government buying U.S.-made exploits exclusively. Williams received 87 months prison same day for $1.3M cryptocurrency sale. Eight proprietary tools designed for U.S. intelligence compromised.

Operation Zero offers million-dollar bounties targeting Windows, encrypted messaging apps. UAE front Special Technology Services LLC also sanctioned alongside associates. Trickbot member Oleg Kucherov linked through prior affiliations.

Advance Security Solutions UAE/Uzbekistan operations hit simultaneously. Sanctions block U.S. asset access exposing partners to enforcement. PAIPA represents escalated response to nation-state exploit procurement.

Broker advertised non-NATO restriction hiding Russian government end-users. Treasury confirmed resale to unauthorized actors post-theft. Physical exfiltration enabled multi-year undetected transfers.

Sanctioned Entities Table

Williams Case Connection

• 87 months prison: February sentencing
• $1.3M cryptocurrency: Exploit payment
• 8 zero-days: L3Harris Trenchant theft
• 2022-2025: Theft timeline
• Five Eyes exclusive: Intended recipients

Secondary sanctions deter American partners immediately. Exploit bounties fuel targeted U.S. software campaigns. Physical theft bypassed network security completely.

Treasury Statements

• “Trade secrets auctioned to foreign adversaries”
• “Millions available for U.S. software exploits”
• “Russian government among known clients”
• “Proprietary tools resold unauthorized”
• “PAIPA first enforcement action”

Russian broker model threatens commercial software globally. Sanctions reshape zero-day procurement economics fundamentally. U.S. contractors face heightened insider scrutiny.

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