Senior Security Engineer Shakib Ahmed admitted in hacking the Nirvana Finance protocol and another unnamed decentralized exchange (DEX). He agreed to return $12.3 million received as a result of the exploit, as well as pay compensation in the amount of $5.07 million.
According to the US Attorney’s Office, in the summer of 2022, Ahmed took advantage of a vulnerability in the smart contract of an unnamed Solana-based exchange to steal funds.
A few weeks later, the hacker carried out another attack on another Nirvana Finance project. Protocol officials offered him a $500,000 reward for returning the funds, but the parties never reached an agreement.
The Southern District of New York court found Shakib Ahmed guilty of hacking smart contracts and stealing assets. The report said the attacker “used sophisticated money laundering techniques such as bridges, cross-chain transactions, asset swaps using Monero, and the Samourai Whirpool cryptomixer.”
US Attorney Damian Williams said Shakib Ahmed’s case is the first ever conviction for such a hack:
The document states that Ahmed faces a maximum penalty of five years in prison. The final verdict in the case will be delivered on March 13, 2024.
On October 5, a critical vulnerability was discovered in the smart contract of the Stars Arena protocol. Cybersecurity company PeckShield reported the theft of $2.9 million worth of AVAX tokens. The hacker subsequently agreed to return 90% of the stolen funds to the platform.
Source: Cryptocurrency
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