MEXCJust In: Crypto Hacker Shakeeb Ahmed Admits to $12 Million Heist
Shakeeb Ahmed, a 34-year-old senior security engineer, has pleaded guilty to orchestrating high-profile hacks, including a $12 million theft from Nirvana Finance and another decentralized exchange. The announcement came from the U.S. Attorney’s Office for the Southern District of New York, marking a pivotal moment in the legal approach to digital currency theft.
Detailed Scheme Unveiled
Ahmed’s admission sheds light on the sophisticated methods used in these cybercrimes. He exploited a vulnerability in a smart contract of a Solana-based exchange, believed to be Crema Finance. This initial breach was followed by a $3.6 million attack on Nirvana Finance, employing a flash loan and another exploit he identified in the platform’s smart contracts. The pursuit of a substantial bounty from Nirvana Finance, which Ahmed rejected in favour of a higher demand, further complicates the narrative.
Advanced Laundering Techniques Exposed
The process Ahmed used to launder the stolen funds highlights the complexities of tracking digital currency crimes. His methods included token-swap transactions, transferring proceeds across blockchain networks, converting assets into Monero, a cryptocurrency known for its anonymity, and using international exchanges and mixers like Samourai Whirlpool. These steps illustrate the intricate web woven by Ahmed to conceal his tracks.
Shakeeb Ahmed’s Consequences and Restitution
Ahmed now faces serious repercussions for his actions. Besides agreeing to forfeit $12.3 million obtained from the hacks, he is also mandated to pay $5 million in restitution to the victims. This decision represents a major stride in holding cybercriminals accountable in the burgeoning field of decentralized finance. Ahmed’s conviction sets a precedent, being the first involving a smart contract attack.
Scheduled for sentencing on March 13, Ahmed faces up to five years in prison. This case underscores the evolving challenges in cryptocurrency security and legal enforcement. The U.S. Attorney’s remarks emphasize the groundbreaking nature of this conviction, setting a legal framework for future cases involving smart contracts and decentralized finance exploits.
Read Also: US Congressman Ro Khanna Proposes Bill to Ban Congressional Stock Trading
- Canary XRP ETF Filing Removes SEC Delay Clause, Targets November Launch
- CFTC, SEC Launch ‘New Era of Collaboration’ to Clarify Crypto Rules, End Regulation by Enforcement
- Senate Committee Finalizes Updated Crypto Market Structure Bill Draft, Release Expected In Days
- €648 Billion Nordea To Allow Customers to Trade Bitcoin-Linked ETFs
- Uphold Joins Gemini, Relaunches XRP Debit Card Following SEC Lawsuit Resolution
- Cardano Price Risks 20% Crash Amid Death Cross and Falling ADA ETF Odds
- Bitcoin Price Forecast as Trump Cuts Tariffs After US-China Trade Deal
- Analyst Foresees a Parabolic Rally for Pepe Coin Price as Whale Accumulation Intensifies
- Fidelity Amends S-1 for Solana ETF: Is SOL Price Set to Rally?
- Pi Coin Price Targets $0.65 as ISO 20022 Membership Boosts Institutional Confidence
- Ethereum Price Flips BTC in Strategy Shift, Eyes $4500 Level
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
