Shakeeb Ahmed, a computer security engineer, was found guilty in Southern New York District (SDNY) Court and given a three-year jail term with three years of supervised release. Ahmed was found guilty in 2022 of carrying out flash loan assaults on the Nirvana and decentralized Crypto Exchanges. Ahmed was found guilty of hacking a smart contract for the first time, according to a statement from U.S. Attorney Damian Williams. Ahmed was also mandated to pay the exchanges $5 million in reparations and forfeit $12.3 million in addition to “a significant quantity of cryptocurrency.”
If the exchange did not notify legal police, Ahmed had offered to restore all of the money taken from the Crypto Exchange, except for $1.5 million.
Ahmed Makes A Deal With Nirvana Post-Hacking Incident
Ahmed requested $1.4 million of the $3.6 million he had hacked, and Nirvana offered him $600,000 in exchange for the cash return. Neither party was able to agree. Following the announcement of the hack, Nirvana’s original ANA currency dropped by 85% and shuttered soon after, and its stablecoin, NIRV, became independent of the US dollar. Ahmed “used token-swap transactions; ‘bridging’ fraud proceeds from the Solana blockchain over to the Ethereum blockchain; exchanging fraud proceeds into Monero […]; using overseas cryptocurrency exchanges; and using cryptocurrency mixers, such as Samourai Whirlpool,” according to the SDNY statement, was the one who laundered the hacked funds.
