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. 

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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