Ex-engineer who stole $9 million from exchanges arrested in US

  • America has indicted a hacker for the first-ever prison hacking of good contracts.
  • The attacker, a former engineer, has been charged with stealing $9 million price of cryptocurrency and defrauding a decentralized alternate.
  • Federal prosecutors mentioned the perpetrator’s disguise try didn’t deter regulation enforcement from monitoring the cash.

U.S. prosecutor Damian Williams launched a Twitter video detailing the first-ever good contract prison hack. Attacker Shakib Ahmed has been charged with wire fraud and cash laundering for allegedly stealing $9 million price of cryptocurrencies from a decentralized alternate (DEX).

A former senior safety engineer at Amazon, Ahmed used his abilities in good contract reverse engineering and blockchain auditing to hack the software program. In July 2022, he took benefit of a vulnerability discovered inside the good contract of a decentralized crypto alternate. By injecting faux value information, he managed to generate $9 million price of illicit funds.

Moreover, the hackers tried to cover the supply of the funds by laundering stolen cryptocurrencies in a collection of transactions. The U.S. Division of Justice mentioned, “He (Ahmed) was stolen by way of a posh collection of transfers on a blockchain, exchanging cryptocurrencies, leaping between totally different crypto-blockchains, and utilizing abroad cryptocurrency exchanges. They laundered cash,” he mentioned.

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Lawyer Williams referred to the attacker’s cash laundering actions, saying, “None of these actions had been supposed to cowl up the defendant’s tracks or defraud regulation enforcement, nor had been my agency or regulation enforcement companions concerned. They actually did not cease chasing the cash.”

In the meantime, the focused DEX supplied $800,000 to report back to regulation enforcement if the hackers did not return all of the stolen cryptocurrencies. Ahmed acquired in contact and made one other supply. His proposal is that the $2.5 million ought to be stored and in return DEX ought to chorus from reporting the assault to regulation enforcement for investigation.

Nonetheless, DEX instructed Ahmed that that they had began making use of for authorized support and that it might not take lengthy to seek out him. Ahmed then stored his $1.5 million and offered detailed details about the vulnerabilities of the crypto alternate platform and the way the code may very well be improved. Lawyer Williams mentioned:

It does not matter if somebody steals cash from a financial institution or scams a decentralized cryptocurrency alternate. Plain and easy, it is all a rip-off.

Many of the feedback within the Twitter neighborhood had been constructive. One person praised the enforcement effort by saying, “That is our favourite enforcement.” One other person mentioned, “Criminals are recreation over, blockchain doesn’t lie!”

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