BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Play Now
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

Ex-Security Engineer Faces Fraud Charges over $9M Cryptocurrency Theft from Solana-Based Exchange

by Dan K
Jul 12, 2023 - 1:01 pm
in Blockchain
An image representing the arrest of Shakeeb Ahmed, a former security engineer charged with wire fraud over a Solana-based DEX exploit.

Ex-Security Engineer Charged Over $9M Cryptocurrency Theft

On June 11, United States Attorney for the Southern District of New York, Damian Williams, announced charges against Shakeeb Ahmed, a former security engineer. Accused of exploiting a smart contract bug, Ahmed allegedly stole $9 million in cryptocurrency from a Solana-based decentralized crypto exchange (DEX).

An Unprecedented Case of Smart Contract Exploitation

This case is the “first-ever criminal case” involving an attack on a smart contract operated by a decentralized exchange (DEX), according to the statement by Williams. Ahmed, exploiting a vulnerability in the DEX’s smart contracts, allegedly generated inflated fees using flash loans.

Covering Tracks Through the Blockchain

Ahmed allegedly laundered the stolen funds through a “series of complex transfers on the blockchain”. This involved swapping cryptocurrencies, hopping across different crypto blockchains, and using overseas crypto exchanges.

Previous Attacks on Solana-Based DEX

A similar incident took place on July 2, 2022, where an unknown hacker exploited Solana-based liquidity protocol Crema Finance, stealing $9.6 million in cryptocurrency. Most of the stolen funds were later returned by the exploiter, who kept $1.6 million as a white hat bounty.

Returning Stolen Funds, but Not Enough to Avoid Charges

Ahmed returned all but $1.5 million of the stolen funds on the condition that the crypto exchange would not refer the attack to law enforcement. But these actions did not cover his tracks or fool law enforcement, according to Williams.

Implications for the DeFi Ecosystem

The arrest and indictment of Ahmed sends a strong message to the DeFi community. The indictment indicates that the Department of Justice (DOJ) is prepared to “pursue criminal charges if a person intentionally uses a protocol in a way that it was not intended to be used,” according to crypto and startup lawyer “Orlando.btc”. The move is seen as potentially beneficial to the overall DeFi ecosystem.

Tags: CyberCrimeDeFiFraudHack
Dan K

Dan K

Dan K, the chief editor, is a visionary wordsmith, shaping narratives with finesse. His discerning eye for detail creates literary masterpieces.

Related Posts

Close-up of Tether's ToS document with highlighted changes related to Singaporean customers.

Tether Restricts USDT Redemption for Certain Singapore Groups: Impacts and Implications

September 25, 2023

Tether, the stablecoin giant, has shifted its ToS, barring certain Singapore entities from redeeming USDT. Cake DeFi's CEO...

Blockchain investigator ZachXBT reviewing a controversial Gotbit document.

Blockchain Investigator ZachXBT Exposes Gotbit’s Controversial Services

September 25, 2023

Blockchain investigator, ZachXBT, takes aim at Gotbit over a leaked report, unveiling potentially manipulative services in the crypto...

Graphic representation of Mixin Network with alert signs indicating system vulnerabilities.

Mixin Network Hack Drains $200M from Mainnet Assets

September 25, 2023

Decentralized peer-to-peer platform, Mixin Network, confirms an approximately $200 million crypto asset loss following a security compromise.

Illustration of Google Cloud's BigQuery connecting with multiple blockchain symbols.

Google Cloud’s BigQuery Encompasses 11 More Blockchains: An Inclusive Cryptocurrency Landscape

September 25, 2023

Google Cloud’s BigQuery now integrates with 11 blockchains, enhancing the scope of crypto analytics and offering a deeper...

Press Releases

David Ferrucci next to the Elemental Cognition brand emblem.

BM Watson’s Lead Developer Secures $60M for New AI Venture, Elemental Cognition

August 18, 2023

David Ferrucci, has raised a remarkable $60M for his AI startup. The company brings forward two pioneering chatbot solutions designed...

pulse5

Amsterdam Gets with the Dutch Blockchain Days the Biggest Event of the Benelux in the Field of Blockchain, Crypto Currencies, NFTs and Other Web3 Developments

May 8, 2023

Discover the future of blockchain, crypto, NFTs, and Web3 at Dutch Blockchain Days, the largest event in Benelux.

pulse4

Korea Blockchain Week 2023 Set to Push the Boundaries after Record-Breaking 2022 Event

May 8, 2023

Korea Blockchain Week 2023 returns after a highly successful 2022 event, featuring leading experts and the latest trends in blockchain...

pulse3

Istanbul Will Be Hosting Eurasia’s Largest Blockchain Event Once again on May 8–11, 2023

May 8, 2023

Join Eurasia's largest blockchain event, the Blockchain Economy Istanbul Summit, May 8-11, 2023, and discover the future of financial technology.

View All
BTC-Pulse LogoTransparent

© 2023 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2023 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise