Marcus Hutchins, 23, was arrested by the FBI in a first class airport lounge and now faces a maximum of 40 years in jail if convicted.
He is the hero who saved the NHS after finding the 'kill switch' that paralysed the WannaCry 'ransomware' that hit more than 300,000 computers in 150 countries in May.
Hutchins is now 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.
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.
He said: 'He's a stand-up guy. I can't reconcile the charges with what I know about him. I don't doubt that some of his code found it's way into malware. He might have even helped criminals posing as researchers'.
Friend Andrew Mabbitt, a British digital security specialist who had been staying in a £5million rented Las Vegas mansion with Hutchins, said: 'I refuse to believe the charges. He spent his career stopping malware, not writing it'. Marcus Hutchins now faces months battling the American courts and could be jailed for 40 years if found guilty of taking part in a hacking conspiracy to steal bank details.
The Devon-born computer expert, who lives with his mum and dad, was held as he tried to leave the US on a first class Virgin Atlantic flight two days ago.
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.
The federal prosecutor in Nevada is likely to ask federal judge Nancy Koppe to have Hutchins extradited to Milwaukee to be arraigned.
He faces six hacking charges that each carry a six-and-a-half-year prison sentence meaning he could face decades in a US jail if convicted.
Mr Hutchins is likely to have to pay a huge bail to be released and will not be able to leave America.
His friends and supporters say that he has been set up.
They have found tweets where he asks for samples of the malware he is accused of creating.
Some have said that the way he killed off the WannaCry 'ransomware' that swept across the globe embarrassed America's own security services.
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.
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