Australian ex-military sold cyber weapons to Russia for millions in crypto

A former Australian Air Force employee has been charged in the United States with selling advanced cyber weapons to Russia. The suspect, Peter Williams, received more than a million dollars in cryptocurrency and, according to justice, endangered the security of Western countries.

Zero-day exploits sold for $1.26 million

Williams, who worked as a contractor in the US after his defense career, is suspected of selling eight digital attack tools, including so-called zero-day exploits. Such vulnerabilities are not yet known to software developers and can be exploited unnoticed for cyber attacks.

The charges allege that he supplied his tools to a Russian exploit broker that sells such leaks to hackers and governments. The proceeds: the equivalent of $1.26 million in cryptocurrency. Justice speaks of a direct threat to the security of the Five Eyes alliance (US, UK, Canada, Australia and New Zealand).

Cryptocurrency and money laundering at the center of espionage case

The criminal file shows that Williams used anonymized crypto transactions to receive his payments. The digital coins were spent on luxury cars, jewelry, travel and a $1.5 million down payment on a home in Washington, according to prosecutors.

Notably, Williams continued trading exploits until July 2025, even after knowing the FBI was investigating him. Total damage is estimated at $35 million.

Prosecutors are seeking nine years in prison, a $250,000 fine and restitution of the full amount of damages.

Crypto increasingly mentioned in international espionage

The case fits into a broader pattern in which cryptocurrencies play a central role in cross-border espionage. Digital coins are used for anonymous payments outside the traditional banking system, making detection difficult.

In June 2025, an Israeli man was arrested for espionage payments in crypto. In Poland, a security chief said Russia is using digital currencies to finance operations in Europe. And in November, US authorities launched an investigation into a Chinese crypto mining company over suspicions of surveillance.

According to the justice department, Williams’ prosecution emphasizes the need to more strictly regulate the trade in cyber weapons and the role of crypto in it.