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NSA security researchers initially developed the tool to hack into the computers of suspected terrorists and spies, but it was taken on by criminals who then used it to take over computers and extort cash from victims if they wanted control back.
Court documents obtained by Daily show that a second defendant, not yet named by the FBI, is accused of selling it on dark web marketplace Alpha Bay, which was shut down by the US government last month, and creating a You Tube video showing how it worked.
He spent his career stopping malware, not writing it.' Court documents accuse him of being responsible for creating the Kronos banking Trojan - but this tweet from the time shows he asks for a sample, with his friends questioning why he would do that when he was supposed to have created it Hutchins was held after a week partying at a hacking conference in Vegas where he took over a £5million mansion with the city's biggest private pool and rented a £200,000 Lamborghini Huracan to race around in.
The so-called malware, called Kronos, has reportedly been used to steal money from bank accounts in France and Hutchins is accused of writing the virus, known as malware, in 2014.
A grand jury indictment charged Hutchins him with creating and distributing malware known as the Kronos banking Trojan.
The indictment was filed in Wisconsin federal court last month.
Hutchins is charged with six counts of making a 'Trojan' program that captures computer users' passwords and personal information and was sold online for £1,500 - but many believe federal officers have the wrong man.
Hutchins was arrested Wednesday while returning home from the Def Con convention for computer security professionals.
Yesterday, his mother Janet Hutchins said it was 'hugely unlikely' that her son was involved because he has spent 'enormous amounts of time' combating such attacks.
Jake Williams, a respected US cybersecurity researcher, said they have worked on various projects, including training material, and the Briton always refused payment. I can't reconcile the charges with what I know about him.
Federal agents took him into custody and he appeared in the Las Vegas court on Thursday but the hearing was adjourned to be continued today.
An indictment was issued by a grand jury impanelled by the US Attorney in the Eastern District of Wisconsin, Gregory Haanstad.
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News of his indictment Thursday left colleagues scrambling to understand what happened.