The point is once you spy and give away information, even to an “ally”, the fact is you have lost control of that information, and it could wind up getting in the hands of anyone at that point.
Yes. Once information is in the hands of a third party, it is fungible and may be used for information barter with unfriendly entities, with no thought to the bearing of the information on the country where it originated.
That SOB should have been executed.