Image: You Today
Shakeeb Ahmed, a security engineer, admitted to exploiting two Solana DeFi applications.
The confession comes after the U.S. Department of Justice announced a landmark conviction for smart contract fraud.
Damian Williams, U.S. attorney for the Southern District of New York, said in a statement that Ahmed had pleaded guilty and agreed to repay the victims for the stolen cryptocurrency.
“Five months ago, our office announced the first arrest related to an attack on smart contracts. Today… Shakeeb Ahmed pleaded guilty and agreed to return all stolen cryptocurrency to his victims… Today’s conviction means that no matter how sophisticated the methods used, a scam is a scam and we will quickly catch you and find you guilty. It shows that they will make a decision.”
Image: Decryption
The story began with Ahmed’s first attack on an unnamed decentralized exchange on July 2, 2022. He fraudulently made $9 million through inflated trading fees.
Despite his offer to return most of the funds in exchange for his silence, authorities arrested him in July 2023. He subsequently targeted Nirvana Finance, a Solana-based platform.
Ahmed manipulated market mechanisms to buy and resell Nirvana’s ANA tokens, making a profit of $3.6 million. His refusal to return these funds led to Nirvana’s financial collapse.
Ahmed’s tactics included converting stolen funds into Monero (XMR) and using various methods to obscure his tracks. This included crypto mixers and fund transfers via blockchain.
His online activity also indicates he searched for legal defense strategies and potential escape plans.
Ahmed currently faces up to five years in prison for computer fraud and is scheduled to be sentenced in March 2024. He agreed to pay $5 million in compensation.