Shakeeb Ahmed, a security engineer, has been sentenced to three years in prison after stealing over $12 million from two decentralized cryptocurrency exchanges (DEXs) built on the Solana blockchain. Following his arrest last year on charges of wire fraud and money laundering, Ahmed’s conviction marks a significant milestone in the enforcement against crypto-related crimes.
Details of the Crime and Sentencing
Ahmed was implicated in the theft of $9 million from what is believed to be Crema Finance and an additional amount from Nirvana Finance, totaling over $12 million. In December, he pleaded guilty to one count of computer fraud. Along with his prison sentence, Ahmed will undergo three years of supervised release, forfeit $12.3 million, and pay $5 million in restitution.
Legal Proceedings and Defense
Federal prosecutors initially proposed a four-year sentence citing Ahmed’s guilty plea and cooperation with authorities, which included surrendering the proceeds from the hacks. His defense argued for no prison time, highlighting his voluntary disclosure of the Nirvana Finance hack even after reaching a plea deal for the previous offense.
Historic Conviction
U.S. Attorney Damian Williams noted Ahmed’s guilty plea as the “first-ever conviction for the hack of a smart contract.” He emphasized the commitment of law enforcement to pursue and prosecute cybercriminals regardless of the sophistication of their methods. Williams also stated that this case demonstrates that those engaging in such illegal activities will face significant time in prison and the forfeiture of stolen assets.
This case underscores the increasing focus of U.S. authorities on securing the cryptocurrency market and the legal implications for crimes in this digitally evolving space.
