Shakeeb Ahmed, a previous security engineer, has been sentenced to three years in prison for stealing more than $12 million from two cryptocurrency exchanges. This decision was made by a federal judge, who also ordered a three-year period of supervised release.

Ahmed was found guilty of wire fraud and money laundering for taking around $9 million from Crema Finance, a decentralized cryptocurrency exchange on the Solana blockchain. He manipulated smart contracts by injecting false pricing information to withdraw excessive fees, resulting in huge unauthorized profits from the DEX liquidity pool.

Additionally, Ahmed was involved in another theft from Nirvana Finance, where he stole over $12 million. He pleaded guilty to computer fraud charges, leading to his arrest in July 2022 and trial in December of the same year.

Despite initial prosecutor recommendations for a four-year prison sentence, Ahmed's cooperation led to a reduced three-year term, along with a directive to forfeit $12.3 million and make a $5 million restitution payment. His attorney's plea for leniency emphasized Ahmed's voluntary disclosure of the second hack, despite the risk of plea deal revocation.

This case marks the first conviction in the U.S. for hacking a smart contract, showcasing the legal challenges surrounding cybersecurity and fraud in the cryptocurrency industry. Law enforcement efforts to prosecute those exploiting digital finance technologies highlight the consequences of cyber theft and manipulation in the evolving digital currency landscape.