US Court Sentences Hacker to Three Years for Crypto Exchange Theft
A recent statement from the US Department of Justice reveals that Shakeeb Ahmed has been sentenced to three years in prison for his involvement in hacking two decentralized cryptocurrency exchanges, resulting in the theft of digital assets exceeding $12 million.
This case represents the first conviction for hacking a smart contract, marking a significant milestone in cybersecurity enforcement. According to US attorney Damian Williams, the sentencing underscores the commitment of law enforcement to pursue hackers and hold them accountable for their actions.
Ahmed has been ordered to forfeit approximately $12.3 million in stolen assets, along with a significant amount of cryptocurrency, and to pay over $5 million in restitution to the affected exchanges.
The hacking incidents occurred in 2022 when Ahmed exploited vulnerabilities in the smart contracts of two decentralized exchanges, including Nirvana Finance and another unnamed platform.
On the unnamed platform, Ahmed manipulated pricing data to extract inflated fees amounting to around $9 million, which he then converted into cryptocurrency. He later returned approximately $7.5 million to the exchange in exchange for avoiding law enforcement involvement.
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Subsequently, Ahmed targeted Nirvana Finance, stealing approximately $3.6 million by exploiting vulnerabilities in its smart contracts to execute profitable trades.
Despite the exchange offering a bounty for the return of stolen funds, Ahmed demanded a higher amount, leading to a standstill and the eventual closure of the exchange.
Following the thefts, Ahmed used sophisticated methods, such as token-swap transactions and advanced crypto mixers, to launder the stolen digital assets. At the time of the crimes, Ahmed held a senior security engineer position at an undisclosed international technology company.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
