U.S. Awarded Contract to Sanctioned Tech Firm
The State Department contracted Oxygen Forensics despite ongoing federal investigations into its Russian ties.
Updated on Sept. 29, 2026 in Cybersecurity
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On August 28, 2026, the U.S. State Department issued a $50,000 contract to Oxygen Forensics through the U.S. Embassy in Zagreb, Croatia. The award occurred while authorities investigated the company for allegedly concealing Russian control.
Why it matters
The contract highlights gaps in vetting for software suppliers suspected of links to the Russian Investigative Committee and FSB. It complicates U.S. efforts to enforce sanctions on Russian entities following the 2022 invasion of Ukraine.
The U.S. government awarded the $50,000 contract without competition. The firm, Oxygen Forensics, faces a $1.85 million lawsuit against former employee Max Weissberg, who previously aired claims regarding the company's internal control.
The players
Oxygen Forensics
A developer of mobile device extraction software used by law enforcement agencies globally.
Lee Reiber
The CEO of Oxygen Forensics charged with concealing foreign ownership.
Sergeyevich Davydov
An associate of Oxygen Forensics arrested at London Heathrow Airport.
Max Weissberg
A former Oxygen Forensics employee currently involved in a $1.85 million damages lawsuit.
The details
Oxygen Forensics is accused of obfuscating its ownership structure through a holding company based in Cyprus to bypass U.S. sanctions. The firm provides specialized data extraction tools used by law enforcement to bypass mobile device security features, which prosecutors allege were also provided to the Russian FSB. The Department of Justice claims these ownership links were intentionally hidden to maintain eligibility for U.S. government procurement programs.
Timeline
2022: U.S. sanctions imposed on Russia.
May 2025: State Department awarded $180,000 contract to Oxygen.
August 28, 2026: State Department awarded $50,000 contract to Oxygen.
September 20, 2026: Authorities detained Lee Reiber and Sergeyevich Davydov.
The Tech Race
This incident exposes critical vulnerabilities in the procurement of dual-use forensics software. It serves as a stark reminder of the challenges in identifying ultimate beneficial ownership in the global digital surveillance market.
Law enforcement agencies currently using Oxygen Forensics tools may face immediate operational disruptions due to the ongoing criminal investigation. Security teams should monitor for updates regarding the company's future ability to provide software support or security patches.
The takeaway
The case underscores the risks of procurement processes failing to identify the true owners of software vendors operating in sanctioned jurisdictions. Readers should watch for upcoming extradition proceedings and potential updates to U.S. government vendor vetting protocols.
Further reading
Explore the current trends in Cybersecurity to understand how global supply chain vetting is evolving.
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