Tag Archive for: sentence

US Hacker Handed Three-Year Prison Sentence for Looting $12,000,000+ in Crypto From Two Decentralized Exchanges

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A US hacker convicted of plundering more than $12 million worth of crypto assets from two decentralized exchanges (DEXs) was sentenced to three years in prison.

In July 2022, Shakeeb Ahmed, a security engineer, used fake pricing data to generate approximately $9 million worth of inflated fees on an unnamed DEX, according to the U.S. Department of Justice.

Ahmed then withdrew those fees in the form of crypto, but he agreed to return all of the stolen funds except for $1.5 million if the exchange agreed not to report the attack to law enforcement.

Later that month, the hacker also hit a DEX called Nirvana Finance, exploiting the project’s smart contracts to offer lower-priced crypto purchases. After purchasing the artificially devalued crypto, Ahmed immediately resold the digital assets at a higher price to the DEX. He managed to loot $3.6 million worth of crypto via the exploit, draining Nirvana’s coffers and causing the DEX to shut down.

The hacker pled guilty to computer fraud and will serve three years of supervised release in addition to his three-year sentence. He was also ordered to forfeit approximately $12.3 million and a “significant quantity” of cryptocurrency, as well as $5 million worth of restitution to the two DEXs.

Damian Williams, the US Attorney for the Southern District of New York, says Ahmed’s prosecution represents the first-ever conviction for the hack of a smart contract.

“No matter how novel or sophisticated the hack, this Office and our law enforcement partners are committed to following the money and bringing hackers to justice.  And as today’s sentence shows, time in prison — and forfeiture of all the stolen crypto — is the inevitable consequence of such destructive hacks.”  

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Russian developer of Trickbot malware pleads guilty, faces 35-year sentence

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A Russian national pleaded guilty in federal court in Cleveland on Thursday to charges related to his involvement in developing and deploying the malicious software known as Trickbot. He faces a maximum penalty of 35 years, the U.S. Department of Justice said.

According to court documents, Vladimir Dunaev, 40, was a member of a cybercriminal organization that deployed Trickbot to steal money and install ransomware on victims’ computers. The group’s victims — including hospitals, schools, and businesses in the U.S. — suffered tens of millions of dollars in losses.

Trickbot, which was taken down last year, is believed to have stolen more than $180 million worldwide. Dunaev was extradited from South Korea to the U.S. in 2021.

Dunaev was actively involved in Trickbot’s operation, the DOJ said. In particular, he created browser modifications and malicious tools to harvest credentials and mine data from infected computers. He also improved remote access for Trickbot actors and developed a code to evade detection by legitimate security software.

“Dunaev and his codefendants hid behind their keyboards, first to create Trickbot, then using it to infect millions of computers worldwide… invading privacy and causing untold disruption and financial damage,” DOJ statement said.

Ten victims in the Northern District of Ohio, including Avon schools and a North Canton real-estate company, were defrauded of more than $3.4 million via ransomware deployed by Trickbot while Dunaev was involved in the operation, prosecutors said.

In June, one of Dunaev’s co-conspirators, Alla Witte — a Trickbot malware developer and Latvian national — pleaded guilty and was sentenced to two years and eight months in prison.

In February and September, the U.S. and U.K. also issued financial sanctions on 18 other members of Trickbot, freezing their assets and imposing travel bans.

The individuals targeted by the sanctions “include key actors involved in management and procurement for the Trickbot group, which has ties to Russian intelligence services,” according to the U.S. Treasury.

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Infamous British Hacker ‘PlugwalkJoe’ Receives Five-Year US Prison Sentence for Cryptocurrency Theft

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In a groundbreaking ruling, British hacker Joseph O’Connor, known as PlugwalkJoe in the online world, has been handed a five-year prison sentence in the United States.

Notorious British Hacker Sentenced to Five Years in US Prison for Cryptocurrency Theft

British hacker Joseph O’Connor, who is famously recognized as PlugwalkJoe in the digital realm, has received a significant five-year prison sentence in the United States. Following his arrest in Spain in July 2021, O’Connor was subsequently extradited to the US on April 26, 2023. His guilty plea in May encompassed various charges related to computer intrusions, wire fraud, and money laundering conspiracies.

The announcement of O’Connor’s sentencing was disclosed by the US Attorney’s Office for the Southern District of New York on June 23.

According to the statement, O’Connor has not been named, but it confirms that he gained unauthorized access to the accounts and computing systems of the exchange where the targeted executive worked by employing a SIM-swapping technique.

The court’s ruling includes not only the prison term but also a three-year period of supervised release. Additionally, O’Connor has been ordered to forfeit the exact amount he pilfered, which totals $794,012.64.

Furthermore, O’Connor’s criminal activities extend beyond the aforementioned SIM swap attack. He and his accomplices orchestrated the high-profile Twitter hack in July 2020, which netted them approximately $120,000 in stolen cryptocurrency.

The Twitter hack involved the deployment of social engineering techniques and SIM-swapping attacks, enabling O’Connor and his associates to seize control of around 130 prominent Twitter accounts.

Other Illegal Activities

In addition to their activities on Twitter, the group of cybercriminals also gained unauthorized access to two prominent accounts on TikTok and Snapchat. Exploiting their scheme, they deceived unsuspecting Twitter users and profited by selling access to compromised accounts.

One notable incident involved O’Connor attempting to blackmail a Snapchat victim by threatening to release private messages…

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Detroit man sentence to prison for hacking into bank accounts, stealing $300K

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A Detroit man was sentenced to prison for stealing more than $300,000 from the bank accounts in a criminal enterprise, Michigan Attorney General Dana Nessel said Wednesday.

Johnny Richardson, 28, was sentenced to three to 20 years behind bars for conducting a criminal enterprise that included gaining cellphone data of victims and hacking into their bank accounts for money or to take out loans, according to Nessel’s office. Richardson will be required to pay for court costs, crime victim fees and $309,210 in restitution.

Richardson already is serving eight years in prison for operating an unemployment fraud scheme during the COVID-19 pandemic. He pleaded guilty in July 2021 to stealing $138,000 in COVID aid.

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