In a precedent-setting case, Shakeeb Ahmed pleaded guilty on Thursday to charges related to hacks on two decentralized cryptocurrency exchanges, including the July attack on Solana decentralized exchange Nirvana Finance. As part of his plea, the 34-year-old New York native has agreed to forfeit over $12 million in stolen funds. This marks “the first ever conviction for such a hack,” said Damian Williams, U.S. attorney for the Southern District of New York, in a statement. Ahmed exploited vulnerabilities in the exchanges’ smart contracts, which are used to automate transactions. At one exchange, he tricked its system into granting him $9 million in false fees last July. From Nirvana Finance, he stole $3.6 million – effectively its entire holdings – also by manipulating smart contracts, prosecutors said. He was arrested in July. The senior security engineer then tried to hide the money through cryptocurrency mixing services, blockchain transfers and overseas accounts. He also researched how to flee prosecution, searching for terms like “evidence laundering” and “buying citizenship,” the indictment stated. After initial charges were filed regarding the first attack in July, Thursday’s plea exposed Ahmed’s role in the previously unsolved case that resulted in Nirvana Finance, a Solana DEX, being exploited. He has agreed to return all embezzled funds to victims. Prosecutors say that Ahmed used a $10 million flash loan to pull off his attack on Nirvana. He used an exploit he discovered in Nirvana’s smart contracts, to purchase ANA at a low price, rather than at the higher price that Nirvana was designed to charge him in light of the size of his purchase.

Full story : Solana DeFi Hacker Pleads Guilty in First-Ever Smart Contract Fraud Conviction.