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Shakeeb Ahmed, a senior security engineer, has admitted to hacking two decentralized cryptocurrency exchanges, marking the first-ever conviction for a smart contract breach.

The announcement was made by the United States Attorney for the Southern District of New York following Ahmeds guilty plea to the fraud charges.

According to the statement, Ahmeds exploits involved the July 2022 hack of Nirvana Finance and another attack on a decentralized crypto exchange.

As part of his plea, Ahmed agreed to forfeit $12.3 million. This includes approximately $5.6 million in fraudulently obtained crypto.

US Attorney Damian Williams highlighted the significance of Ahmeds conviction. He emphasized that regardless of the complexity of cyber methods, fraudulent activities would be promptly identified and prosecuted.

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The statement alleges that Ahmed has expertise in reverse engineering smart contracts and blockchain audits. He reportedly executed the hacks while employed as a senior security engineer for an international technology company.

Meanwhile, the first attack targeted a crypto exchange, where Ahmed exploited a smart contract vulnerability, causing it to produce around $9 million in inflated fees.

However, after successfully withdrawing the funds, Ahmed engaged in negotiations with the exchange. He allegedly offered to return most of the stolen funds in exchange for not involving law enforcement.

The statement further explains how Ahmed took out an attack against Nirvana Finance.

Ahmed leveraged a flash loan of $10 million, manipulating the protocols smart contracts to reap a $3.6 million profit. Despite Nirvanas offer of a bug bounty, Ahmed demanded $1.4 million, leading to the platforms closure.

To conceal his illicit gains, Ahmed employed advanced laundering techniques. This included token-swap transactions, blockchain bridging, Monero exchanges, and the use of crypto mixers.

Following the attacks, Ahmed actively sought information about his criminal liability, criminal defense strategies, and ways to flee the US.

He conducted internet searches related to defi hacks, law enforcement investigations, and methods to prevent asset seizure.

Shakeeb Ahmed, 34, faces a maximum sentence of five years in prison and has agreed to pay restitution totaling $5,071,074.23 to his victims.

His sentencing is scheduled for March 13, 2024, before United States District Judge Victor Marrero.

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In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

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Nirvana Finance Hacker Forfeits Millions, Amid Pleading Guilty - BeInCrypto