Rimsky-Korsakov Prospect, Building 109-111, Litera/Block A, Apartment 20, Saint Petersburg, 190068, Russia
Reg. ID
780223642330, Tax ID No.
Function
Other
Official reason
Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Sergey Sergeyevich Zelenyuk (Zelenyuk) and his company, Matrix LLC (doing business as Operation Zero), as well as five associated individuals and entities, for their acquisition and distribution of cyber tools harmful to U.S. national security. Zelenyuk and Operation Zero trade in “exploits”—pieces of code or techniques that take advantage of vulnerabilities in a computer program to allow users to gain unauthorized access, steal information, or take control of an electronic device—and have offered rewards to anyone who will provide them with exploits for U.S.-built software. OFAC is designating Zelenyuk, Operation Zero, and the five associated individuals and entities pursuant to Executive Order (E.O.) 13694, as further amended by E.O. 14306 (“E.O. 13694, as further amended”). In parallel with this action, the Department of State is sanctioning Zelenyuk, Operation Zero, and an affiliated UAE company, Special Technology Services LLC FZ (STS) pursuant to the Protecting American Intellectual Property Act (PAIPA). Russian national Zelenyuk,through his St. Petersburg, Russia-headquartered company Operation Zero, has been active as an exploit broker since 2021. In advertisements and other public-facing materials, Zelenyuk and Operation Zero have stated that they will only sell the exploits they acquire to customers from non-NATO countries. Zelenyuk, through Operation Zero, has sought to sell exploits to foreign intelligence agencies. Zelenyuk and Operation Zero have also sought to develop other cyber intelligence systems, including spyware and methods to extract personal identifying information and other sensitive data uploaded by users of artificial intelligence applications like large language models. OFAC is designating Zelenyuk and Operation Zero pursuant to E.O. 13694, as further amended, for being responsible for or complicit in, or having engaged in, directly or indirectly, cyber-enabled activities originating from, or directed by persons located, in whole or substantial part, outside the United States that are reasonably likely to result in, or have materially contributed to, a threat to the national security, foreign policy, or economic health or financial stability of the United States, and that have the purpose of or involve causing a misappropriation of funds or economic resources, intellectual property, proprietary or business confidential information, personal identifiers, or financial information for commercial or competitive advantage or private financial gain.
Protecting American Intellectual Property Act of 2022 (PAIPA)
Regime
OFAC-horizontal
Target State
Cyber-attacks
Measures
Blocking Property, Suspending Entry
Official Information
This bill imposes sanctions on certain foreign individuals and entities involved in the theft of trade secrets belonging to a U.S. individual or entity.
The President shall periodically report a list of foreign individuals and entities that have knowingly engaged in, benefited from, or assisted in the significant theft of U.S. trade secrets that materially contributed to a significant threat to U.S. national security, foreign policy, or economic health. The report shall also list foreign individuals who are chief executive officers or board members of any foreign entity engaging in such theft.
The President shall impose (1) property- and visa-blocking sanctions on individuals named in the report; and (2) property- or export-blocking sanctions, including denial of certain financial assistance, on entities named in the report.
