Peter Williams, a former general manager at Trenchant, the spyware division of defense contractor L3Harris, has pleaded guilty to two counts of theft of trade secrets after selling sensitive U.S. cybersecurity software to a Russian cyber-tools broker. The Department of Justice disclosed that the stolen material included eight highly protected cyber-exploit components intended strictly for U.S. government use and select allies.

The illicit activity occurred over a period of three years during which Williams exploited his access to the company’s secure networks. He entered into multiple encrypted contracts with the broker, who is known to do business with the Russian government.

In exchange, Williams was promised millions in cryptocurrency and used the proceeds to purchase luxury items.

The scheme reportedly caused L3Harris $35 million in losses and potentially armed foreign cyber actors with advanced tools.

Why It Matters: Insider threats pose severe national security threats within the defense sector as cyberweapons become a new frontier in global espionage. Williams’s actions endangered sensitive U.S. assets and may have directly enabled foreign cyberattacks against American interests.

• Insider Theft at Major U.S. Defense Firm: Peter Williams, an Australian national and former general manager of Trenchan, used his senior-level access to systematically steal national-security software from 2022 to 2025. The stolen assets included proprietary cyber-exploit components designed for highly sensitive use by the U.S. government and a limited circle of allied nations.

• Sale to Russian Broker Known for Government Ties: Williams transferred the stolen cyber tools to a Russian cyber-tools broker, which publicly markets itself as a reseller of cyber exploits to foreign entities, including the Russian government. The broker’s activities align with a broader strategy of foreign cyber intelligence collection. DOJ officials emphasized the real-world consequences of these transfers, suggesting that the exploits may have been used in hostile cyber operations targeting U.S. systems or allied infrastructure.

• Profiting Through Cryptocurrency and Contractual Deals: To carry out the scheme, Williams entered into multiple written contracts with the Russian broker. These agreements detailed payment for the initial transfer of stolen cyber components and continued payments for ongoing “follow-on support.” In return, he was promised multimillion-dollar payments in cryptocurrency, a method often used to obscure financial trails. Williams used the proceeds to fund personal luxury purchases, demonstrating how financial greed fueled a serious breach of national trust.

• $35 Million Loss and National Security Exposure: The U.S. Attorney’s Office confirmed that Williams’s actions resulted in over $35 million in losses to L3Harris and compromised valuable intellectual property. The unauthorized distribution of such tools likely gave foreign adversaries a technological edge in launching sophisticated cyberattacks, with wide-reaching implications for civilian and military cybersecurity systems.

• Justice Department’s Warning on Emerging Threats: Federal prosecutors and senior national security officials framed the case as part of a broader pattern where insider threats are exploited by foreign cyber brokers acting as modern arms dealers. The DOJ emphasized that this plea reflects a larger commitment to punishing breaches that endanger U.S. national security, with Attorney General Pamela Bondi and FBI officials calling it a stark warning to others who might consider trading classified assets for personal gain.

Go Deeper -> Former Trenchant exec pleads guilty to selling cyber exploits to Russian broker – The Record

Former General Manager for U.S. Defense Contractor Pleads Guilty to Selling Stolen Trade Secrets to Russian Broker – U.S. Department of Justice