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- Shakeeb Ahmed has been sentenced to just a few years for hacking Nirvana Finance, marking the first conviction for dapper contract exploitation
- The Department of Justice announced the sentence four months after Ahmed’s guilty plea
- US authorities emphasize that Ahmed’s case is precedent-setting and similar convictions are likely in the lengthy creep
In a landmark case, Nirvana Finance hacker Shakeeb Ahmed became on Friday handed a 3-12 months sentence for his crime, marking the first conviction of its kind for hacking a dapper contract. The Department of Justice (DoJ) announced the sentence following Ahmed’s guilty plea in December. US authorities warned that this is succesful of perchance well very neatly be the first time someone has been jailed for exploitation of a dapper contract, nevertheless it indubitably indubitably won’t be the closing.
Ahmed Stole $12 Million
The DoJ brought prices against Ahmed in July 2023, accusing him of orchestrating an elaborate procedure that alive to him exploting vulnerabilities in dapper contracts, leading to inflated expenses and monumental monetary losses for both Nirvana and one other unnamed cryptocurrency commerce. Ahmed manipulated pricing data and performed flash loans, profiting to the tune of more than $12 million bucks.
Despite Nirvana’s supply of a “bug bounty” to reach the stolen funds, Ahmed refused and demanded a higher sum, in the kill leaving the platform bankrupt. To conceal the illicit origins of the funds, Ahmed employed sophisticated laundering ways, collectively with token-swap transactions, defective-blockchain fraud transfers, and privateness coin Monero.
Following the assaults, Ahmed made efforts to evade make a selection, researching issues corresponding to prison felony responsibility, extradition, and asset security, along with his web search queries collectively with advice on fleeing the US and procuring citizenship in other countries.
Guilty Plea Devices the Scene
Ahmed pleaded guilty to the costs in December of the earlier 12 months, and closing week agreed to forfeit $12.3 million purchased through his practices. To boot to to the forfeiture, Ahmed has been ordered to pay restitution amounting to over $5 million to the 2 exchanges he defrauded.
US Criminal official Damian Williams welcomed the sentence and the precedent:
Despite how new or sophisticated the hack, this Position of enterprise and our law enforcement companions are dedicated to following the money and bringing hackers to justice. And as as of late’s sentence shows, time in penal complex — and forfeiture of the total stolen crypto — is the inevitable outcome of such negative hacks.
The sentence comes as Mango Markets exploiter Avraham Eisenberg is on trial for his noxious deeds, which furthermore alive to the manipulation of dapper contracts in a unparalleled more excessive-profile case.
