Hacker Sentenced to 3 Years in Prison for $12 Million Theft

Key Takeaways

Following a guilty plea to computer fraud, hacker Shakeeb Ahmed received a three-year prison sentence for stealing more than $12M from Solana-based DEXs;
Additionally, Ahmed is required to forfeit $12.3M and pay $5M in restitution;
This case marks the first conviction for smart contract hacking, emphasizing severe penalties for blockchain security breaches.

Shakeeb Ahmed, a former security engineer, has been sentenced to three years in prison for his involvement in a multimillion-dollar theft from two decentralized exchanges (DEXs) on the Solana blockchain. Alongside his prison term, Ahmed must forfeit $12.3 million and pay $5 million in restitution.

The federal court’s decision comes after Ahmed’s guilty plea to charges of computer fraud, which included stealing over $12 million from Crema Finance and Nirvana Finance. Federal prosecutors suggested a four-year sentence, slightly below the maximum five-year statutory limit, due to Ahmed’s confession and surrendering of crime proceeds.

US Attorney Damian Williams commented on the case, highlighting the significance of Ahmed’s sentence in being the first conviction for smart contract hacking. He emphasized the consequences of such hacks, including prison time and forfeiture of stolen crypto. As legal measures tighten around blockchain security, hackers are facing harsher penalties for exploiting these technologies.

Legal actions are currently underway against Avi Eisenberg, accused of an alleged $110 million exploit of the Mango Markets DEX.

Aaron, with a Master’s degree in Economics, Politics, and Cultures of East Asia, has extensive experience in the FinTech industry. As a passionate analyst, he focuses on data-driven content for both crypto enthusiasts and newcomers. Aaron is dedicated to educating on blockchain and Web3 to make the space more accessible. He is quoted by multiple media outlets and enjoys researching market trends in his free time.

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