Former Amazon software engineer Shakeeb Ahmed has been sentenced to three years in prison for exploiting smart contracts, resulting in the theft of over $12 million in various cryptocurrencies in 2022. This marked the first-ever sentencing for a cyberattack on smart contracts.

Ahmed confessed in December 2023 to manipulating smart contracts by inserting fraudulent pricing data, generating around $12 million in unearned profits that he withdrew as cryptocurrency.

While the prosecutors did not disclose one of the affected platforms, evidence suggests it was Crema Finance. The other platform involved was Nirvana Finance, which ceased operations after the hack in July 2022.

Before the incident, Ahmed led Amazon’s bug bounty program, identifying and fixing security loopholes in its software. The prosecution recommended a four-year prison term, emphasizing the need for his imprisonment to deter future offenses.

Ahmed’s defense argued for probation, citing his compromised mental health during the hacks and the fact that the stolen funds were mainly untouched except for covering a relative’s medical expenses. His legal team also pleaded for leniency based on his background from Saudi Arabia.

Stay informed with more news and updates on cryptocurrencies, investing, and finance on Global Crypto News.

Post Views: 8