What happens if an ex-Amazon engineer hacks a cryptocurrency exchange?

An ex-Amazon engineer pleaded guilty this week to hacking two cryptocurrency exchanges. The conviction is the first ever secured in a case involving the hacking of a smart contract. He'll face up to five years in prison and will be made to pay back $12.3 million in stolen funds. By clicking “Sign Up”, you accept our and .

Did Ahmed hack a cryptocurrency exchange?

According to the charging documents and other filings and statements made in court: In July 2022, AHMED executed hacks on two separate decentralized cryptocurrency exchanges, an exchange referred to herein as the “Crypto Exchange” and Nirvana Finance (“Nirvana”). In July 2023, AHMED was publicly charged with the hack of the Crypto Exchange.

How did a hacker exploit a vulnerability in the exchange's smart contracts?

Ahmed exploited a vulnerability in the exchange's smart contracts, according to the US Attorney, allowing him to submit falsified data that resulted in the contracts generating millions of dollars worth of inflated fees he hadn't earned.