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Computer security engineer sentenced to three years in prison for hacking decentralized exchanges

Bits.media / 13.04.2024 / 12:58
Computer security engineer sentenced to three years in prison for hacking decentralized exchanges
The court of the Southern District of New York found guilty computer security engineer Shakib Ahmed of hacking the decentralized crypto exchanges Crypto Exchange and Nirvana and sentenced him to three years in prison.

As noted by U.S. Attorney Damian Williams, the sentence of Shakeeb Ahmed was the first sentence for hacking a smart contract. In addition, Ahmed must pay $12.3 million and "significant amounts of cryptocurrencies", as well as pay crypto exchanges $5 million in damages.

As part of the Crypto Exchange hacking case, Ahmed must return all stolen funds, with the exception of $1.5 million. To receive this money, the management of the hacked exchange must contact US law enforcement agencies. In the case of Nirvana, the site's management offered Ahmed $600,000 to return the stolen $3.6 million, but the hacker requested $1.4 million. As a result, no agreement was reached.

Shakib Ahmed used instant loans to hack the smart contracts of these exchanges. Funds from the Solana blockchain were transferred to the Ethereum network, and then converted into the Monero cryptocurrency.

Recall that Ahmed was accused of stealing $9 million in various cryptocurrencies in July last year.

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