An Australian contractor, Peter Williams, admitted in U.S. federal court that he sold sensitive defense software to a Russian cyber-tools broker, handing over at least eight protected cyber-exploit components and causing major harm to U.S. national security and a Washington company. The theft happened over several years and involved encrypted transfers, written contracts, and promised cryptocurrency payments. Prosecutors say the stolen material was designed for exclusive use by the U.S. government and select allies, and the case drew comments from senior Justice Department and FBI officials.
Peter Williams, 39, pleaded guilty to two counts of theft of trade secrets in U.S. District Court. The indictment says the stolen material included national-security-focused software with at least eight sensitive and protected cyber-exploit components that were never supposed to leave cleared hands. Each theft count carries a statutory maximum of 10 years in prison and a fine up to $250,000 or twice the pecuniary gain or loss from the offense, underscoring the gravity of the betrayal.
The criminal conduct spanned roughly from 2022 through 2025, according to court filings, with Williams abusing his access to a defense contractor’s secure network to copy the cyber exploit components. He transferred the eight components and trade secrets to a Russian cyber-tools broker through encrypted means and entered multiple written contracts that promised initial payments plus ongoing support fees. Prosecutors say he did this for the promise of millions of dollars in cryptocurrency and spent proceeds on high-value purchases.
Those components were meant to be sold exclusively to the U.S. government and select allies, but Williams sold the trade secrets to a Russian cyber-tools broker that publicly advertises itself as a reseller of cyber exploits to various customers, including the Russian government. The supplier’s public posture made the threat clear: sensitive tools intended to defend Americans were rerouted to actors aligned with hostile foreign interests. The result, officials say, was over $35 million in loss to the affected company and a dangerous boost to foreign cyber capabilities.
“America’s national security is NOT FOR SALE, especially in an evolving threat landscape where cybercrime poses a serious danger to our citizens,” said Attorney General Pamela Bondi. Her stark line frames the case as more than a corporate theft, calling it an attack on the security Americans rely on. From a conservative standpoint, the incident highlights the need for tough consequences and secure vetting of those with access to critical systems.
Assistant Attorney General for National Security John A. Eisenberg described Williams’ actions bluntly. “Williams betrayed the United States and his employer by first stealing and then selling intelligence-related software to a foreign broker that touted its ties to Russia and other foreign governments,” he said. “His conduct was deliberate and deceitful, imperiling our national security for the sake of personal gain. Today’s guilty plea reflects our commitment to ensuring that insiders who abuse their positions of trust face serious consequences.”
U.S. Attorney Jeanine Ferris Pirro emphasized the broader threat from international cyber brokers. “We continue to vigorously investigate those who betray our national security by selling valuable U.S. trade secrets to international cyber brokers who support foreign cyber actors,” she said. “These international cyber brokers are the next wave of international arms dealers and we continue to be vigilant about their activities. The conduct here caused over $35 million of loss to a company in the District of Columbia and allowed non-allied foreign cyber actors to obtain sophisticated cyber exploits that were likely used against numerous unsuspecting victims.”
The FBI’s Baltimore Field Office led the probe into the scheme, and an FBI leader framed the case in plain terms about motive and consequence. “Williams placed greed over freedom and democracy by stealing and reselling $35 million of cyber trade secrets from a U.S. cleared defense contractor to a Russian Government supplier,” said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence Division. “By doing so, he gave Russian cyber actors an advantage in their massive campaign to victimize U.S. citizens and businesses. This plea sends a clear message that the FBI and our partners will defend the homeland and bring to justice anyone who helps our adversaries jeopardize U.S. national security.”
The prosecution is being handled by Assistant U.S. Attorneys Tejpal Chawla and Jason McCullough for the District of Columbia, Trial Attorney Prava Palacharla for the National Security Division’s National Security Cyber Section, and Trial Attorney Nicholas Hunter for NSD’s Counterintelligence and Export Control Section. Substantial assistance was also provided by interim U.S. Attorney Scott Bradford for the District of Oregon before his current appointment. The coordinated effort signals how seriously federal prosecutors treat insider threats tied to foreign adversaries.
Editor’s Note: The Schumer Shutdown is here. Rather than put the American people first, Chuck Schumer and the radical Democrats forced a government shutdown for healthcare for illegals. They own this.
