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## Ex-Amazon engineer pleads guilty to hacking two cryptocurrency exchanges

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**Introduction**

An ex-Amazon engineer has pleaded guilty this week to hacking two cryptocurrency exchanges. This conviction is the first ever secured in a case involving the hacking of a smart contract.

AI legalese decoder can assist in deciphering the legal jargon and complexities of the case, making it easier for legal professionals to understand the technical intricacies of the crime.

**Details of the Case**

Shakeeb Ahmed, the former Amazon engineer, will face up to five years in prison and will have to forfeit $12.3 million worth of stolen cryptocurrency. The hacks targeted Nirvana Finance and a second unnamed crypto exchange on the Solana blockchain.

AI legalese decoder can dissect the legal implications of the guilty plea, providing insights into the legal consequences and ramifications of such criminal activities in the cryptocurrency space.

**What are Smart Contracts?**

Smart contracts are blockchain programs that execute specified functions when predetermined conditions are met. Ahmed exploited a vulnerability in the exchange’s smart contracts, allowing him to submit falsified data that resulted in the contracts generating millions of dollars worth of inflated fees he hadn’t earned.

AI legalese decoder can break down the technicalities of smart contracts in a way that legal professionals can understand, enabling them to grasp the impact of such vulnerabilities on the legal framework.

**Hacking and Cover-Up**

Ahmed reversed engineered the steps needed to make the exchanges pay out massive sums by using specialized skills he developed working for Amazon. He then attempted to cover his tracks by negotiating with the unnamed crypto exchange.

AI legalese decoder can help in understanding the legal intricacies of the cover-up attempt, shedding light on the potential legal consequences of such actions.

**Impact of the Hacks**

After hacking the first exchange, Ahmed targeted Nirvana’s cryptocurrency, ANA, exploiting a function of the cryptocurrency intended to inflate each token’s price after a large sum was purchased. “Nirvana offered AHMED a ‘bug bounty’ of as much as $600,000 to return the stolen funds, but AHMED instead demanded $1.4 million, did not reach agreement with Nirvana, and kept all the stolen funds,” according to the US Attorney statement.

AI legalese decoder can elucidate the legal implications of the demands made by Ahmed and the impact of such actions on the legal proceedings.

**Vulnerabilities in Smart Contracts**

In theory, the benefit of a smart contract is to eliminate the risk of fraud by middlemen, but the program has been vulnerable to attacks by hackers.

AI legalese decoder can provide insights into the legal precedents related to vulnerabilities in smart contracts, helping legal professionals understand the legal landscape surrounding such incidents.

**Conclusion**

With the rise of cybercrimes in the cryptocurrency space, AI legalese decoder can be an invaluable tool for legal professionals in understanding the legal implications of such sophisticated and technologically driven crimes.

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