{"id":75991,"date":"2024-04-12T15:04:14","date_gmt":"2024-04-12T19:04:14","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=75991"},"modified":"2024-04-12T15:04:18","modified_gmt":"2024-04-12T19:04:18","slug":"ex-security-engineer-sentenced-to-3-years-for-12m-crypto-hack","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ex-security-engineer-sentenced-to-3-years-for-12m-crypto-hack\/","title":{"rendered":"Ex-Security Engineer Sentenced to 3 Years For $12M Crypto Hack"},"content":{"rendered":"\n

A former security engineer, Shakeeb Ahmed, has been jailed for three years for his role in stealing $12 million from two crypto exchanges.<\/a><\/p>\n\n\n\n

\"\"
Ex-Security Engineer Sentenced to 3 Years For $12M Crypto Hack<\/figcaption><\/figure>\n\n\n\n

Shakeeb Ahmed, a former security engineer, was sentenced to three years in prison for his involvement in misappropriating more than $12 million<\/strong> from two cryptocurrency exchanges. A federal judge administered the sentence and additionally mandated a period of three years of supervised release. <\/p>\n\n\n\n

Shakeeb Ahmed was apprehended and indicted on wire fraud and money laundering charges concerning the theft of around $9 million from Crema Finance, \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>a Solana blockchain-based decentralized cryptocurrency exchange (DEX).\u00a0<\/p>\n\n\n\n

SHAKEEB AHMED was sentenced today by a U.S. District Judge to three years in prison for hacking two separate DEXs and stealing more than $12 million worth of cryptocurrency, marking the first-ever U.S. conviction for hacking a smart contract. One such DEX is Nirvana Finance.\u2026<\/p>— Wu Blockchain (@WuBlockchain) April 12, 2024<\/use><\/svg><\/span><\/a><\/blockquote> \n\n\n\n

Through the manipulation of smart contracts and the injection of erroneous pricing data, he was able to extract exorbitant fees. According to the U.S. Department of Justice, Ahmed executed twenty-one flash loans and generated enormous illegitimate profits by utilizing the DEX liquidity pool. <\/p>\n\n\n\n

In addition to the breach at Crema Finance, Ahmed participated in an additional heist at Nirvana Finance, which netted him over $12 million<\/strong>. Ahmed, who entered a guilty plea regarding the computer fraud charge, was apprehended in July 2022. His trial subsequently commenced in December of the identical year. <\/p>\n\n\n\n

The Sentencing And Restitution of Shakeeb Ahmed\u00a0<\/h2>\n\n\n\n

Initially, federal prosecutors recommended a four-year prison term when determining the sentence, taking into account the heinous nature of the offenses; however, Ahmed's cooperation was considered. Ahmed was sentenced to three years in prison and ordered to forfeit $12.3 million and make restitution of $5 million by the magistrate. <\/p>\n\n\n\n

Ahmed's legal representative argued in favor of leniency, citing his voluntary disclosure of his second breach on Nirvana Finance<\/use><\/svg><\/span><\/a> as grounds. Ahmed was cognizant that this admission could result in the court rescinding his plea agreement. Despite this, the court imposed a custodial sentence to underscore the seriousness of the offenses he had undertaken.\u00a0<\/p>\n\n\n\n

Impact on The Cryptocurrency Industry<\/h2>\n\n\n\n

This case is recognized as the initial conviction that U.S. Attorney Damian Williams secured in connection with the breach of a smart contract. It draws attention to the legal issues and expanding legal precedents surrounding cyber security and misconduct in the cryptocurrency industry, which is more closely observed. <\/p>\n\n\n\n

Prosecuting such cases aims to establish a specific trajectory concerning the legal ramifications associated with cyber larceny and the manipulation of digital currency-related technological infrastructures. <\/p>\n\n\n\n

As a result, Ahmed's sentencing underscores the persistent endeavors of law enforcement agencies to apprehend and litigate individuals who exploit the realm of digital finance, irrespective of the complexity of their methods.<\/p>\n","protected":false},"excerpt":{"rendered":"

A former security engineer, Shakeeb Ahmed, has been jailed for three years for his role in stealing $12 million from two crypto exchanges. Shakeeb Ahmed, a former security engineer, was sentenced to three years in prison for his involvement in misappropriating more than $12 million from two cryptocurrency exchanges. A federal judge administered the sentence and additionally […]<\/p>\n","protected":false},"author":53,"featured_media":76002,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11476],"tags":[18587,6369,5817],"class_list":["post-75991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hacks-and-scams","tag-crypo-exchange","tag-crypto-scam-2","tag-hack-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/04\/b-1.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/75991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/53"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=75991"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/75991\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/76002"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=75991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=75991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=75991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}