Former Amazon security engineer Shakeeb Ahmedadmitted this week to committing a breach and stealing over $12.3 million from two cryptocurrency exchanges in July 2022.
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The two affected companies are Nirvana Finance, a decentralized cryptocurrency exchange, and an anonymous exchange platform, the Solana blockchain, which Ahmed hacked using his skills in blockchain and reverse engineering smart contracts.
Initially, he targeted the exchange, tricking a smart contract into entering fake data , generating approximately $9 million. Later, Ahmed withdrew the funds and offered to return all but $1.5 million, on the condition that the exchange avoid getting involved with enforcement authorities.
Although not explicitly mentioned by the Department of Justice, the details of the attack match those of a breach that occurred in July 2022 and affected the decentralized finance (DeFi) platform Crema Finance.
Shortly after this first breach, Ahmed exploited a smart contract loophole in Nirvana Finance’s DeFi protocol to take a flash loan of ANA cryptocurrency at a low price and sell it back at a higher price, earning around $3.6 million.
Despite offering a $300,000 reward for the return of the stolen cryptocurrencies, Ahmed kept everything he stole (representing all funds belonging to Nirvana Finance) after demanding $1.4 million and failing to reach an agreement, forcing the exchange to shut down.
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In an attempt to conceal his actions and hide the digital trail of the stolen funds, Ahmed used cryptocurrency mixers (including Samourai Whirlpool), the Solana and Ethereum, and foreign exchanges to convert the millions he stole into Monero, a cryptocurrency known for its increased privacy and anonymity.
His online searches revealed his interest in strategies to flee the United States, prevent asset forfeiture, and secure citizenship in various countries, clearly demonstrating Ahmed's intent to avoid legal consequences for his actions.
Ahmed pleaded guilty to a single count of computer fraud ,a crime punishable by up to five years in prison. He also pledged to pay restitution to his victims totaling $5,071,074.23. He will also forfeit more than $12.3 million, including approximately $5.6 million worth of cryptocurrency obtained through fraud.
The trial date is set for March 13, 2024, and will be presided over by United States District Court Judge Victor Marrero.
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Hackers use a variety of intrusion methods to gain unauthorized access to systems and networks. One common method is the use of malicious software, known as malware. Malware can be installed on a computer through malicious email attachments, malicious websites, or by exploiting vulnerabilities in software.
Another common method is sending seemingly legitimate emails, known as phishing. Hackers send emails that appear to come from well-known companies or organizations and ask the recipient to provide personal information or click on malicious links.
Additionally, hackers can exploit weaknesses in a computer's software or operating system to gain access. This can be done by executing malicious code, exploiting vulnerabilities in open ports, or using brute force attacks to guess passwords.
Source: bleepingcomputer
