A US court docket has sentenced Shakeeb Ahmed to a few years in jail for hacking two separate decentralized crypto exchanges and stealing digital belongings value over $12 million, in keeping with an April 12 assertion from the US Division of Justice.
The sentencing marks the primary time somebody has been convicted for hacking a sensible contract.
US lawyer Damian Williams mentioned:
“Irrespective of how novel or subtle the hack, this Workplace and our legislation enforcement companions are dedicated to following the cash and bringing hackers to justice. And as immediately’s sentence reveals, time in jail — and forfeiture of all of the stolen crypto — is the inevitable consequence of such harmful hacks.”
Ahmed was additionally ordered to forfeit roughly $12.3 million and a big amount of crypto and pay over $5 million in restitution to the unnamed crypto change and Nirvana.
The hacks
In 2022, Ahmed hacked the sensible contracts of two decentralized crypto exchanges, together with Nirvana and an unnamed protocol, for a considerable quantity of a digital asset.
The DOJ mentioned Ahmed manipulated pricing information on the unnamed platform to siphon roughly $9 million in inflated charges and withdrew the funds in crypto. Subsequently, Ahmed agreed to return round $7.5 million beneath the situation that the change refrains from involving legislation enforcement.
Shortly after, Ahmed focused Nirvana Finance, stealing about $3.6 million. In response to the DOJ, Ahmed exploited Nirvana’s sensible contracts to buy crypto at decrease costs from the change and offered it at larger costs.
Regardless of the change providing a $600,000 bounty, Ahmed demanded $1.4 million, resulting in a stalemate and the retention of all stolen funds, culminating within the change’s closure.
Subsequently, Ahmed laundered the stolen digital belongings utilizing subtle strategies comparable to token-swap transactions and superior crypto mixers like Samourai Whirlpool.
On the time of those thefts, Ahmed was a senior safety engineer for an unnamed worldwide know-how firm.
The put up US court docket palms down historic sentence for sensible contract hacker appeared first on CryptoSlate.
