An American citizen has been arrested because he hacked a crypto platform

The American authorities have arrested the ex-engineer in charge of security, Shakib Ahmed. He is suspected of a hacker attack on a decentralized platform. It resulted in a loss of $9 million.

What is known about the case

Ahmed is accused of fraudulent activities in which electronic currencies and money laundering were used. Law enforcement officials called this situation the "first criminal case" that is related to smart contracts.

The local prosecutor said that the attacker was laundering stolen assets using false transfers. Transitions between several blockchains and foreign cryptocurrency exchanges were also involved.

The materials say that last summer, the specialist used a vulnerability in the smart contract of the crypto exchange. He provided false information about prices. As a result, the protocol created about 9 million increased fees. The accused was able to withdraw them in an illegal way.

Later, the attacker made an offer to the crypto exchange to return the funds. However, he said that he would keep $1.5 million of the amount as a reward. At the same time, the condition for the return was the absence of a statement from the police.

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