New York prosecutor charges hacker with $9 million for operating Solana-based exchange

A qualified computer security engineer has been charged with wire fraud and money laundering related to an attack on a decentralized exchange. News Join us on social networks

A former security engineer for an international technology company has been arrested and charged for allegedly using a smart contract bug to steal $9 million in cryptocurrency from a Solana-based decentralized crypto exchange.

On June 11, U.S. Attorney for the Southern District of New York, Damian Williams, announced the "first criminal case" involving an attack on a smart contract operated by a decentralized exchange (DEX).

In a statement, Williams claims that the accused - Shakeeb Ahmed - "used his expertise to defraud the exchange and its users and steal approximately $9 million in cryptocurrency."

U.S. Attorney Damian Williams announces the first-ever criminal case involving an attack on a smart contract operated by a decentralized cryptocurrency exchange pic.twitter.com/j3JPv2L612

Williams said the attack was carried out in July 2022 and targeted a Solana-based DEX.

The attack involved exploiting a vulnerability in the exchange's smart contracts to generate inflated fees with flash loans.

These were then withdrawn and laundered via a “series of complex blockchain transfers where he traded cryptocurrencies, jumped on different crypto blockchains, and used foreign crypto exchanges.”

While Williams did not disclose the DEX that was exploited in July, a previous Cointelegraph report reveals that an unknown hacker exploited Solana-based Crema Finance liquidity protocol on July 2, 2022, stealing 9 .6 million in cryptocurrency.

The exploiter later returned most...