Millions in crypto funded tools to exploit U.S. software, Treasury says in new sanctions

CoinDesk

by Jesse Hamilton

February 24, 2026

AI-Generated Deep Dive Summary

The U.S. Treasury Department has imposed sanctions on a Russian company, Operation Zero, and its associates for allegedly purchasing stolen cyber tools using cryptocurrency. These tools were originally developed for exclusive use by the U.S. government and its allies but were stolen by an Australian national, Peter Williams, who sold them to Operation Zero. The department accused the individuals involved of exploiting vulnerabilities in computer software and re-selling these technologies, which were intended for national security purposes. The sanctioned individual, Sergey Zelenyuk, along with his company, is reported to have recruited hackers and established ties with foreign intelligence agencies through social media. Cryptocurrency played a significant role in facilitating these transactions, though the Treasury did not blacklist specific crypto addresses. This case marks the first time individuals have been targeted under the Protecting American Intellectual Property Act, which aims to safeguard sensitive U.S. intellectual property from foreign exploitation. The use of cryptocurrency in illegal activities has come under increasing scrutiny, as seen in recent reports highlighting its role in criminal operations. The Treasury's actions underscore the growing focus on regulating and monitoring crypto transactions to prevent misuse. This case also raises concerns about the potential for stolen cyber tools to be exploited by hostile actors, threatening national security and intellectual property rights. For those interested in crypto, this development highlights the risks associated with its use in facilitating illegal activities. While cryptocurrency offers anonymity and financial flexibility, its involvement in such cases can lead to stricter regulations and increased scrutiny from authorities. The case also serves as a reminder of the importance of securing digital assets and intellectual property, particularly in the context of national security.

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Originally published on CoinDesk on 2/24/2026