An Australian individual has admitted guilt in a plot involving the theft of sophisticated hacking tools from a U.S. defense contractor, intending to sell these tools to a Russian buyer, according to the U.S. Justice Department.

The hacking tools, designed for exclusive sale to the U.S. government and its selected allies, were instead sold by 39-year-old Peter Williams to a Russian broker of software exploits. This broker is known for advertising its connections with Moscow and other international governments, the Justice Department reported.

The prosecutors indicated that the theft resulted in $35 million (approximately $53 million) in damages for the involved company, which remains unnamed in the court filings.

However, according to British business records, Williams formerly served as the general manager at Trenchant, a strategic intelligence entity under the ownership of U.S. defense contractor L3Harris Technologies.

L3Harris’ official site characterizes Trenchant as a reliable and discreet collaborator that provides security products, consulting, training, and integration services to governments, defense, security, and law enforcement agencies allied with the U.S.

A lawyer for Williams declined to comment today, as did a spokesperson for L3Harris.

The case shines a light on the private market for software exploits that bypass tech firms’ security controls and can fetch millions of dollars from government and non-government buyers alike.

US Attorney Jeanine Pirro called online brokers that sell hacking tools “the next wave of international arms dealers”.

In Williams’ case, the theft and sale of the tools “allowed non-allied foreign cyber actors to obtain sophisticated cyber exploits that were likely used against numerous unsuspecting victims,” Pirro said in a statement.

The Justice Department did not identify any alleged victims.

Williams allegedly used the proceeds from the sale of software exploits to buy luxury watches and other items, according to prosecutors. He was promised “millions of dollars” in cryptocurrency payments, the Justice Department said.

US national security officials have long been concerned that hacking techniques that American or Western intelligence officers hone in government work will be commercialised and used against Americans.

The Justice Department in 2021 charged three former US intelligence or military operatives who allegedly helped build a hacking program for the United Arab Emirates government.

“America’s national security is NOT FOR SALE, especially in an evolving threat landscape where cybercrime poses a serious danger to our citizens,” Attorney-General Pamela Bondi said in a statement today.