Robert Dougherty 
Williams was sentenced in the US District Court for the District of Columbia on 24 February. US District Court Judge Loren AliKhan ordered him to serve three years of supervised release with special conditions, to forfeit a money judgment of US$1.3 million, cryptocurrency, and property, including a house, and luxury items such as watches and jewellery.
Judge AliKhan declared that Williams acknowledged that his actions caused harm to the intelligence communities, both in the US and Australia.
The court has also set a restitution hearing for 12 May 2026.
“Williams exploited his senior role at a US defence contractor to enrich himself at the expense of the United States and his employer,” said Assistant Attorney-General for National Security John A. Eisenberg.
“The tools he compromised were intended to protect this nation; instead, he auctioned them off to a Russian bidder.
“We are committed to ensuring that those who abuse their access to sensitive information and thereby harm our national security face severe consequences.”
Williams pleaded guilty in the US District Court for the District of Columbia to two counts of theft of trade secrets on 29 October last year.
As part of his plea agreement, Williams admitted that he stole eight cyber-exploit components over a three-year period from the US defence contractor where he worked.
The national-security-focused software was meant to be sold exclusively to the US government and select allies.
Williams admitted that he sold the trade secrets to a Russian cyber-tools broker in exchange for cryptocurrency payments, which he used to buy valuable items, such as luxury vacations, jewellery, watches, clothing, and properties.
“Peter Williams stole a US defence contractor’s trade secrets about highly sensitive cyber capabilities and sold them to a broker whose clients include the Russian government, putting our national security and countless potential victims at risk,” said Roman Rozhavsky, assistant director of the FBI’s counterintelligence and espionage division.
“The FBI and our partners remain unwavering in our commitment to protecting America’s critical technologies, and we will ensure any who attempt to profit at our nation’s expense face the full weight of the criminal justice system.
“Let this be a clear warning to all who consider placing greed over country: If you betray your position of trust and sell sensitive American technology to our foreign adversaries, the FBI will not rest until you’re brought to justice.”
To effectuate the sales, Williams allegedly entered into multiple written contracts with the Russian broker, which involved payment for the initial sale of the components, and additional periodic payments for follow-on support.
Williams transferred the eight components and trade secrets to the Russian broker through encrypted means. This cyber-tools broker publicly advertises itself as a reseller of cyber exploits to various customers, including the Russian government.
The US Department of the Treasury’s Office of Foreign Assets Control and the Department of State took separate actions to disrupt a Russian cyber-tools broker and its operators.
Williams admitted that his actions cost the government contractor a financial loss of US$35 million. Williams’ conduct also had a significant impact on the government contractor’s customers, including the US government and allied government customers.
“Williams took trade secrets comprised of national security software and sold them for up to [US]$4 million in cryptocurrency. These incredibly powerful tools would have allowed Russia to access millions of digital devices,” said US Attorney Jeanine Pirro for the District of Columbia.
“By betraying a position of trust and selling sensitive American technology, Williams’ crime is not only one of theft, it is a crime of national security.
“Our nation’s defence capabilities are not commodities to be auctioned off. People like Williams who endanger our national security will be met with swift and decisive consequences.”
This article was originally published on Cyber Daily’s sister brand, Defence Connect.