State Department Sanctions for Intellectual Property Theft

State Dept EB Bureau

Filed February 24th, 2026

Detected March 1st, 2026

Summary

The Department of State has sanctioned one individual and two entities under the Protecting American Intellectual Property Act (PAIPA) for theft of trade secrets. This action, supported by Treasury designations, marks the first use of PAIPA and targets cyber tools stolen from a U.S. company.

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What changed

The Department of State, in conjunction with the Department of the Treasury, has imposed sanctions on one individual and two entities under the Protecting American Intellectual Property Act (PAIPA) for their involvement in the theft of trade secrets from U.S. persons. This marks the first designations under PAIPA and is related to an investigation into Australian national Peter Williams, who pleaded guilty to stealing proprietary cyber tools from a U.S. company and selling them for millions in cryptocurrency. The sanctions are supported by concurrent Department of the Treasury designations.

These actions highlight the U.S. government's commitment to combating intellectual property theft and cybercrime, which pose significant threats to national security and economic prosperity. Companies, particularly those in sensitive and emerging technologies, should be aware of the increased enforcement and potential sanctions for trade secret theft. While no specific compliance deadline is mentioned, the investigation and guilty plea indicate ongoing efforts to prosecute such activities. Penalties for trade secret theft can be severe, including financial sanctions and criminal prosecution.

What to do next

Review internal controls for the protection of trade secrets, especially concerning cyber tools and emerging technologies.
Assess exposure to intellectual property theft risks and potential vulnerabilities.
Stay informed about evolving sanctions and enforcement actions related to intellectual property theft.

Penalties

Sanctions imposed on individuals and entities; potential for criminal prosecution and significant financial penalties for trade secret theft.

Source document (simplified)

Home Office of the Spokesperson Press Releases … Protecting Americans from Intellectual Property Theft hide

Protecting Americans from Intellectual Property Theft

Press Statement

Thomas "Tommy" Pigott, Principal Deputy Spokesperson

February 24, 2026

Today, the Department of State is sanctioning one individual and two entities under the Protecting American Intellectual Property Act (PAIPA) in connection with theft of trade secrets from U.S. persons. These are the first designations under PAIPA and are supported by concurrent Department of the Treasury designations. Theft of trade secrets, particularly in relation to sensitive and emerging technologies, poses a serious threat to U.S. national security and economic prosperity. Such theft harms U.S. national security, jobs, companies, and investments, while costing U.S. industry billions of dollars each year.

Today’s designations coincide with an investigation by the Department of Justice and Federal Bureau of Investigation of Australian national Peter Williams, who pleaded guilty on October 29, 2025, to two counts of theft of trade secrets.

Williams stole several proprietary cyber tools from a U.S. company between 2022 and 2025 and sold them to Operation Zero in exchange for millions of dollars paid in cryptocurrencies.

The Trump Administration is committed to using all tools at its disposal to protect Americans from intellectual property theft and cybercrime, which threaten the economic stability and national security of our country.

Today’s action is being taken pursuant to the authorities under the Protecting American Intellectual Property Act (50 U.S.C. 1709) and Executive Order (E.O.) 13694, as amended. For more information on today’s action, please see the Department of State’s Fact Sheet and Department of the Treasury’s press release.