Peter Williams, a former general manager at L3Harris cyber-division Trenchant, pleaded guilty to selling at least eight zero-day exploits to a Russian cyber broker between 2022 and 2025. The exploits, stolen from Trenchant, were sold for $1,300,000 in cryptocurrency and were intended for the exclusive use of the U.S. government and select allies. The broker's clients include the Russian government, posing a significant national security threat.
Williams used his privileged access to the company's network to steal the exploits and transmitted them via encrypted channels. The FBI has emphasized the severity of the crime, highlighting the potential impact on US national security. Williams now faces up to 10 years in prison and fines of $250,000 or twice the gain or loss pertinent to the offense.
The case underscores the growing concern over the trade in commercial spyware and zero-day exploits, with international efforts underway to curb this activity. Trenchant, the cyber-capabilities business unit within L3Harris Technologies, was conducting its own investigation into the potential leak of Google Chrome zero-day vulnerabilities, with another employee, Jay Gibson, at the epicenter of the accusations.
Peter Williams, 39, was sentenced to a little over seven years in prison for selling eight zero-day exploits to Russian exploit broker Operation Zero. Williams was ordered to serve three years of supervised release with special conditions and forfeit illicit proceeds, including properties, clothing, jewelry, and luxury watches. The exploits could have been used against any manner of victim, civilian or military around the world, and engage in all manner of crime from cyber fraud, theft, and ransomware, to state directed spying and offensive cyber operations against military targets. Williams sold the trade secrets for up to $4 million in cryptocurrency. The actions are estimated to have incurred L3Harris $35 million in financial losses.
The U.S. State Department designated Operation Zero, Sergey Sergeyevich Zelenyuk, and Special Technology Services LLC FZ (STS) under the Protecting American Intellectual Property Act (PAIPA). Zelenyuk is a Russian national and the director and owner of Operation Zero. Zelenyuk established STS in the U.A.E. to conduct business with various countries in Asia and the Middle East and likely get around U.S. sanctions imposed on Russian bank accounts. Operation Zero has offered up to $4 million in bounties for Telegram exploits and $20 million for tools that could be used to break into Android and iPhone devices. Operation Zero has 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.
The U.S. Treasury Department has sanctioned a Russian exploit broker who bought stolen hacking tools from a former executive of a U.S. defense contractor. The Department's Office of Foreign Assets Control (OFAC) designated Matrix LLC (doing business as Operation Zero and headquartered in St. Petersburg, Russia) on Tuesday, along with its owner, Sergey Sergeyevich Zelenyuk, and five associated individuals and companies. OFAC sanctioned the targets under the Protecting American Intellectual Property Act (PAIPA), a law specifically targeting intellectual property theft by foreign adversaries, the first time that law has been used since its enactment.
The designations also coincide with the sentencing of Peter Williams, a 39-year-old Australian national and former general manager of Trenchant, a cybersecurity unit of U.S. defense contractor L3Harris that develops zero-day exploits and surveillance tools. Williams was sentenced Tuesday to 87 months in prison after pleading guilty in October to stealing eight zero-day exploits from Trenchant and selling them to Operation Zero for approximately $1.3 million in cryptocurrency, even though they were designed exclusively for use by the U.S. government and allied intelligence agencies.
Operation Zero is offering millions of dollars in bounties to security researchers and others for the development or acquisition of exploits targeting commonly used software, including U.S.-built operating systems and encrypted messaging applications. The company, whose clients also include the Russian government, says it's selling zero-day exploits only to Russian private and government organizations.
"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'—the Department of the Treasury said.
"Among the exploits that Operation Zero acquired were at least eight proprietary cyber tools, which were created for the exclusive use of the U.S. government and select allies and which were stolen from a U.S. company. Operation Zero then sold those stolen tools to at least one unauthorized user."
OFAC also sanctioned Zelenyuk's UAE-based front company, Special Technology Services LLC, as well as two individuals with prior ties to Operation Zero (including Oleg Vyacheslavovich Kucherov, who is a suspected member of the Trickbot cybercrime gang) and a second exploit brokerage firm, Advance Security Solutions, with operations in the United Arab Emirates and Uzbekistan. The sanctions freeze all U.S.-held assets belonging to designated entities and individuals and expose American businesses and individuals conducting transactions with them to secondary sanctions or enforcement actions.