US federal agencies including the Department of Defence and Department of Homeland Security have been discovered to have purchased digital forensics software from Oxygen Forensics, a Virginia-based company that was secretly owned and controlled by Russian nationals. The company's CEO, Lee Reiber, and Russian national Oleg Davydov have been arrested and charged with wire fraud conspiracy for allegedly concealing the company's Russian ownership and the fact that software development was conducted in Russia. This is significant because the same Russian operation that supplied Oxygen also sold identical software under different names to Russian security agencies including the FSB, meaning US law enforcement potentially acquired tools built by the same developers serving Russia's security services.

Prosecutors allege that Oxygen Forensics was owned through a Cyprus-based holding company by five Russian nationals, whilst a separate Russian company (MKO Systems LLC, formerly Oxygen Software LLC) under the same ownership sold software to Russian intelligence and security agencies. The concealment intensified following Russia's 2022 invasion of Ukraine and subsequent US sanctions expansion. US agencies, including Homeland Security Investigations, the Secret Service's National Computer Forensics Institute, and the Defence Department were told the company was independent American-owned, yet the Russian owners remained involved in major decisions such as setting executive compensation and controlling bank account authorisation. Reiber was arrested in Idaho whilst Davydov was apprehended at Heathrow Airport; if convicted, both face sentences of up to 20 years imprisonment. The Department of Justice has clarified that no malicious code has been alleged in the software itself.