An Australian executive pleaded guilty to selling sensitive U.S. cyber tools to a Russian broker for over $1.26 million in cryptocurrency. Peter Williams, a former defense contractor manager, admitted to two counts of theft of trade secrets, with prosecutors seeking a nine-year prison sentence and at least $35 million in restitution for the stolen intellectual property.
An Australian executive who pleaded guilty to selling sensitive cyber tools to a Russian broker was paid in cryptocurrency under contracts promising millions more. Peter Williams admitted to two counts of theft of trade secrets in Washington, with prosecutors saying he received about $1.26 million in crypto over three years.
Williams sold eight protected cyber-exploit components, including zero-day capabilities, to a Russia-based broker known to do business with the Russian government. The tools were developed for use by the U.S. intelligence community and shared with Five Eyes alliance partners, according to prosecutors.
A sentencing memo indicates additional payments of up to $4 million were promised under ongoing cooperation agreements. The companies involved have lost more than $35 million, and Williams allegedly kept selling exploits even after he knew the FBI was investigating.
Williams moved the crypto through anonymized transactions before cashing out and spending over $715,000 on luxury items and a $1.5 million down payment for a Washington property. Prosecutors are seeking a sentence of nine years in prison, $35 million in mandatory restitution, a fine of $250,000, and three years of supervised release.
In a letter to the court, Williams acknowledged his actions were “selfish and shortsighted.” The case shows crypto is “increasingly appearing as a payment rail in national-security and espionage-adjacent crimes,” Angela Ang, head of policy and strategic partnerships for Asia Pacific at TRM Labs, told Decrypt. She noted that while regulated exchanges have stronger controls, gaps remain when actors use offshore platforms or peer-to-peer channels.
