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Former Security Engineer Pleads Guilty to Hacking Cryptocurrency Exchanges
A former security engineer for an international technology company pleaded guilty to hacking two separate decentralized cryptocurrency exchanges, including Nirvana Finance, in New York, 2022.
Shakeeb Ahmed, a U.S. citizen, was charged with computer fraud in connection with the hacks. He was accused of stealing over $12.3 million in cryptocurrency, including approximately $5.6 million in fraudulently obtained cryptocurrency.
According to the charging documents, Ahmed executed the hacks in July 2022, using his technical expertise to exploit vulnerabilities in the cryptocurrency exchanges’ smart contracts. He was able to withdraw approximately $9 million in fees from one of the exchanges and stole another $3.3 million from Nirvana Finance.
Ahmed, who was a senior security engineer at the time of the hacks, used his skills to cover his tracks by swapping stolen cryptocurrency for Monero, using cryptocurrency mixers, hopping across blockchains, and utilizing overseas cryptocurrency exchanges.
U.S. Attorney Damian Williams praised the conviction, saying, ‘Today’s conviction shows that no matter how sophisticated the methods used, fraud is fraud, and we will swiftly catch and convict you.’
As part of his plea agreement, Ahmed agreed to forfeit the stolen cryptocurrency and return it to the victims. He is currently facing charges of computer fraud and could face significant prison time if convicted.
Defendant: Shakeeb Ahmed
Criminal Charges: Computer Fraud
City and State: New York
Date: July 2022
Sentence: Plea Agreement, Forfeiture of Stolen Cryptocurrency, Pending Sentencing
Dollar Amounts: $12.3 million, $5.6 million, $9 million, $3.3 million
Key Facts
- State: New York
- Category: Cybercrime
- Source: DOJ Press Release â†â€â€
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