- Australian national Peter Williams pleaded guilty to selling US cyber intelligence tools to a Russian broker for crypto.
- Prosecutors say he received over $1.26 million in crypto and was promised up to $4 million more under contracts.
- The breach exposed sensitive cyber tools shared with Five Eyes allies and caused over $35 million in losses.
Peter Williams, a 39-year-old Australian national, pleaded guilty in a US District Court to selling sensitive cyber intelligence to a Russian cyber-tools broker. The US Department of Justice confirmed Williams pleaded to two counts of theft of trade secrets.
Prosecutors Seek Prison Sentence
The stolen material came from a US defense contractor where Williams worked. The data included national-security software and at least eight protected cyber-exploit components developed for US government use and select allies.
The tools were later sold to a Russia-based broker that advertises links to foreign government clients, including Russia. The theft occurred between 2022 and 2025. Prosecutors said Williams used his access to a secure company network to obtain and transfer the materials through encrypted channels.
Each charge carries a maximum penalty of 10 years in prison and fines of up to $250,000 or twice the financial gain or loss linked to the offense. Prosecutors are seeking a nine-year prison sentence, $35 million in mandatory restitution, a $250,000 fine, and three years of supervised release.
The case is being handled by federal prosecutors in Washington and investigated by the FBI’s Baltimore Field Office. Williams is scheduled to be sentenced in Washington next week.
Cryptocurrency Payments and Multi-Million Dollar Deals
Williams received cryptocurrency payments for the stolen cyber tools under multiple written contracts with the Russian broker.
Prosecutors confirmed he received more than $1.26 million in crypto and was promised additional payments that could reach $4 million under ongoing cooperation agreements.
The payments covered the initial transfer of cyber-exploit components and future technical support. Authorities said Williams moved the crypto through anonymized transactions before converting funds into cash.
He used the proceeds to purchase luxury goods, including vacations, cars, jewelry, and a $1.5 million down payment for property in Washington. Investigators also said he continued selling cyber tools through July 2025, even after learning that the FBI had opened an investigation.
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National Security Impact and Intelligence Risks
Prosecutors said the stolen technology included advanced cyber tools such as zero-day capabilities designed for US intelligence operations. The tools were also shared with Five Eyes intelligence partners, including the United States, the United Kingdom, Canada, Australia, and New Zealand.
Authorities said the breach exposed sensitive capabilities and could allow foreign cyber actors to use or resell the tools against targets worldwide.
The case reportedly caused more than $35 million in losses to the affected company and risked weakening joint intelligence operations. Officials said the actions gave Russian cyber actors an operational advantage and threatened US citizens and businesses.
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Source: https://coinedition.com/australian-executive-pleads-guilty-to-selling-us-cyber-tools-for-crypto/
