US prosecutors say a British computer expert has admitted to creating software that harvests bank details.
But Marcus Hutchins' own lawyer says he denies six charges of creating and distributing the Kronos malware.
The 23-year-old from Ilfracombe, Devon, who helped stall the WannaCry cyber-attack which hit the NHS, was arrested on Wednesday in Las Vegas.
He was granted $30,000 (£23,000) bail, but will spend the weekend in prison after not being able to pay on Friday.
As he left the courtroom Mr Hutchins was ordered to walk with his hands behind his back but he was not shackled.
No members of his family were present, but defence lawyer Adrian Lobo presented the judge with a bundle of letters.
She said they were from friends and relatives showing support for a client who had never been in trouble with the law in the US or the UK.
Mr Hutchins' mother, Janet Hutchins, has said her son's involvement is "hugely unlikely" because he has spent "enormous amounts of time and even his free time" combating malware.
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Defence lawyer Ms Lobo told the BBC: "He's pled not guilty. He is standing by that and he fights the charges and we intend to fight the case in Wisconsin."
She described the federal indictment against him as "pretty flimsy, it's pretty slim compared to what we normally see in a United States indictment."
Prosecutors told a Las Vegas court on Friday that Mr Hutchins had been caught in a sting operation when undercover officers bought the code.
They claimed the software was sold for $2,000 in digital currency in June 2015.
Dan Cowhig, prosecuting, also told the court that Mr Hutchins had made a confession during a police interview.
"He admitted he was the author of the code of Kronos malware and indicated he sold it," said Mr Cowhig.
The lawyer claimed there was evidence of chat logs between Mr Hutchins and an unnamed co-defendant - who has yet to be arrested - where the security researcher complained of not receiving a fair share of the money.
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