Former Security Engineer Charged with Wire Fraud and Money Laundering for Hacking DEX
– Shakeeb Ahmed, a former security engineer, has been charged with wire fraud and money laundering in the United States.
– Ahmed allegedly hacked a decentralized exchange (DEX) and stole $9 million in July 2022.
– This is the first time charges have been brought against a suspect for exploiting a DEX’s smart contract.
– The affected exchange is a liquidity market maker on the Solana blockchain.
– Ahmed used his skills in reverse engineering smart contracts and blockchain audits to carry out the attack.
Hacker attempts to launder stolen funds
– After the theft, Ahmed contacted the exchange and offered to make a refund while keeping $1.5 million for himself.
– He tried to launder the funds through complex transfers and swapping cryptocurrencies on different blockchains.
– However, his attempts to conceal the funds were unsuccessful.
Indictment suggests connection to Crema Finance hack
– The indictment revealed that Ahmed conducted online searches related to the attack, including terms like “how to stop the federal government from seizing assets” and “buying citizenship.”
– The timeline of the attack and Ahmed’s negotiations with the DEX align with a security breach that affected Crema Finance in July 2022.
Ahmed faces serious charges
– Ahmed faces charges of wire fraud and money laundering, with each charge carrying a maximum prison sentence of 20 years.
– Law enforcement agencies, including the IRS-CI Cyber Crimes Unit, are committed to tracking and holding cyber fraudsters accountable.
Hot Take:
This case highlights the increasing risk of attacks on decentralized exchanges and the challenges faced by law enforcement in investigating and prosecuting such crimes. It also raises questions about the security measures in place for DEXs and the need for stronger regulations to protect investors.
By
By
By
By
By
By