Hacker sentenced to 3 years in prison for stealing $12 million
Key Takeaways
- Hacker Shakeeb Ahmed was sentenced to three years in prison for stealing more than $12 million from Solana-based DEX after pleading guilty to computer fraud.
- Additionally, Ahmed will forfeit $12.3 million and must pay $5 million in restitution.
- U.S. attorneys highlighted the case as the first conviction for smart contract hacking and emphasized severe penalties for blockchain security breaches.
Former security engineer Shakeeb Ahmed Sentenced to 3 years in prison He is accused of being involved in the theft of millions of dollars from two decentralized exchanges (DEXs) on the Solana blockchain.
In addition to being jailed, Ahmed must: Forfeit $12.3 million and pay $5 million in restitution.
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The federal court’s decision follows Ahmed’s guilty plea to computer fraud charges. More than $12 million was stolen from Crema Finance and Nirvana Finance.
Federal prosecutors sought a four-year sentence for Ahmed, slightly less than the statutory maximum of five years. ““He fully acknowledged his hacking and accepted responsibility by giving up the proceeds of his crimes.”
U.S. Attorney Damian Williams commented on the case:
Shakeeb Ahmed becomes the first person ever to be convicted of smart contract hacking and is sentenced to prison <...>. And as today’s sentencing demonstrates, jail time and the confiscation of all stolen cryptocurrency are the inevitable consequences of such a destructive hack.
As the legal framework for blockchain security strengthens, hackers will face increasingly serious consequences for exploiting these technologies.
Meanwhile, legal action is ongoing against Avi Eisenberg, who is accused of exploiting the Mango Markets DEX for $110 million.
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