The U.S. Department of State has announced the designation of one individual and two entities under the Protecting American Intellectual Property Act (PAIPA) in relation to the theft of trade secrets from U.S. persons.
Matrix LLC, also known as Operation Zero, is identified as a Russian cyber-tools broker that advertises itself as a reseller of cyber exploits to multiple clients, including the Russian government. According to the State Department, between 2022 and 2025, Peter Williams, an Australian national employed by a U.S. defense contractor, stole eight trade secret "zero-day exploits." These are techniques that exploit software vulnerabilities for which there are no existing patches. The stolen exploits were intended for exclusive sale to the U.S. government and select allies but were instead sold by Williams to Operation Zero in exchange for $1.3 million in cryptocurrency payments.
Sergey Sergeyevich Zelenyuk is described as a Russian national who serves as both director and sole owner of Operation Zero. He established Special Technology Services LLC FZ (STS), a company based in the United Arab Emirates, with plans to do business with countries in Asia and the Middle East. The State Department notes that this move was likely aimed at circumventing U.S. sanctions on Russian bank accounts.
"Operation Zero and Zelenyuk are foreign persons that knowingly engaged in, or benefitted from, significant theft of trade secrets of United States persons, which occurred on or after January 5, 2023, and is reasonably likely to result in, or has materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States," according to the announcement. "STS is an entity that is owned or controlled by, or that has acted or purported to act for or on behalf of, directly or indirectly, Zelenyuk."
At the same time as these actions by the State Department under PAIPA, the U.S. Department of Treasury designated Zelenyuk and his companies—Matrix LLC (doing business as Operation Zero) and STS—along with four associated individuals and entities pursuant to Executive Order (E.O.) 13694 (as amended by E.O. 14306).
These designations mean all property belonging to those named that falls within U.S. jurisdiction is blocked; Americans are generally barred from doing business with them. Those engaging in certain transactions with designated parties may also risk sanctions themselves.
The sanctions applied include those specified in Section 2(b)(1)(A), (D), (H), (I), and (J) regarding entities like Operation Zero and STS; individuals designated under PAIPA face additional restrictions outlined in Section 2(b)(2).
This action draws upon authority provided by both PAIPA (50 U.S.C. 1709) and Executive Order 13694 as amended.
For more details about these measures see the Department of Treasury’s press release or visit the Cyber Sanctions page maintained by the State Department.
