Former Defense Contractor Sentenced to 87 Months in Prison for Selling Secrets to Russia: Peter Williams Trade Secrets Case Concludes
Published
Key Takeaways
- Sentence Handed Down: Peter Williams, an Australian national, was sentenced to 87 months in prison for selling sensitive U.S. defense cyber-exploit components to a Russian broker.
- Financial Penalties: The court ordered Williams to forfeit $1.3 million, cryptocurrency, and property, and set a restitution hearing for May 2026.
- National Security Impact: The theft involved eight cyber-exploit components intended exclusively for the U.S. government, causing an estimated $35 million loss to the contractor.
Peter Williams, 39, was sentenced to over 7 years in prison for orchestrating a significant breach of a U.S. defense contractor subsidiary. Williams, a former senior employee at Trenchant, admitted to stealing highly sensitive trade secrets and auctioning them off to a Russian zero-day exploit broker.
The Department of Justice announced that, in addition to the 87-month prison term, Williams must serve three years of supervised release and forfeit luxury assets, including watches, jewelry, and real estate acquired through the illicit sales.
Details of the Cybersecurity Espionage
The investigation revealed that over a three-year period, Williams accessed and stole eight distinct cyber-exploit components. These tools were classified as "national security software" meant solely for use by the United States and its allies.
Williams entered into contractual agreements with the Russian broker, transferred the data via encrypted channels in exchange for up to $4 million in cryptocurrency, which he used to purchase luxury items and vacations.
This act of cybersecurity espionage provided foreign adversaries with access to powerful digital weapons, which officials stated could have allowed Russia to “access millions of digital devices.”
“Peter Williams stole a U.S. defense contractor’s trade secrets about highly sensitive cyber capabilities and sold them to a broker whose clients include the Russian government, said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence and Espionage Division.
Implications of National Security Theft
This case adds to the growing number of insider threats. The national security theft resulted in $35 million in financial losses and harmed intelligence communities in both the U.S. and Australia.
Assistant Attorney General John A. Eisenberg emphasized that the tools compromised were designed to protect the nation, not to be sold for personal enrichment.
In November 2025, a New York fiber laser expert was convicted of stealing trade secrets for China in an economic espionage case, and CrowdStrike confirmed an insider threat incident linked to Scattered Lapsus$ Hunters.
Related
Get expert insights on threats, breaches, scams, and security trends — delivered every Monday.
Most Popular
Get expert insights on threats, breaches, scams, and security trends — delivered every Monday.
Most Popular