Additional Coverage:
- Former US defense contractor employee pleads guilty to selling hacking tools to buyer in Russia (cnn.com)
Australian Man Pleads Guilty in Scheme to Sell U.S. Hacking Tools to Russia
An Australian national has pleaded guilty in connection with a sophisticated plot to pilfer advanced hacking tools from a U.S. defense contractor and then sell them to a buyer in Russia, the Justice Department announced Wednesday.
Peter Williams, 39, admitted to his role in the scheme involving tools specifically designed for exclusive use by the U.S. government and its close allies. Instead, prosecutors allege Williams sold these sensitive assets to a Russian software exploit broker known for its purported ties to Moscow and other foreign governments.
The theft resulted in an estimated $35 million in losses for the unnamed defense company, according to court documents. However, British business records indicate Williams previously served as the general manager of Trenchant, an intelligence firm owned by U.S. defense giant L3Harris Technologies. L3Harris’s website describes Trenchant as a “trusted, discreet partner” providing security products, consulting, training, and integration services to allied governments, defense, security, and law enforcement agencies.
Neither an attorney for Williams nor a spokesperson for L3Harris offered comments on the matter.
This case sheds light on the lucrative, yet shadowy, private market for software exploits-vulnerabilities that bypass security controls and can command millions of dollars from both government and non-government entities. U.S. Attorney Jeanine Pirro characterized online brokers dealing in hacking tools as “the next wave of international arms dealers.”
Pirro stated that Williams’s actions in stealing and selling these tools “allowed non-allied foreign cyber actors to obtain sophisticated cyber exploits that were likely used against numerous unsuspecting victims.” The Justice Department did not specify any alleged victims in their statement.
Prosecutors allege Williams used the profits from the sale of these software exploits to acquire luxury items, including high-end watches, and was promised “millions of dollars” in cryptocurrency payments.
U.S. national security officials have long voiced concerns about the commercialization of hacking techniques developed by American or Western intelligence officers, fearing these tools could ultimately be turned against U.S. interests. In a similar vein, the Justice Department in 2021 charged three former U.S. intelligence or military operatives for their alleged involvement in developing a hacking program for the United Arab Emirates government.
Attorney General Pamela Bondi underscored the gravity of the situation, stating, “America’s national security is NOT FOR SALE, especially in an evolving threat landscape where cybercrime poses a serious danger to our citizens.”