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Security engineer jailed for 3 years for $12M crypto hacks

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A cybersecurity engineer, who is now a former one has been given a three-year prison term for illegally taking around $12 million worth of cryptocurrency.

It is alleged by prosecutors that the person breached two cryptocurrency exchanges, namely Crema Finance and Nirvana Finance, in 2022. It was reported that pilfered resources from Nirvana Finance were responsible for leading to the termination of their business operations.

Although information regarding his former workplace has not been revealed, it has been verified by authorities that he had worked at Amazon previously. This occurrence emphasizes the rising apprehension of individuals in positions of trust exploiting their cybersecurity expertise for self-interest.

He allegedly tried to blackmail Crema Finance after their hack by asking for a $1.5 million “finder’s fee” in exchange for returning the stolen assets, an action commonly known as “white hatting” within crypto circles. However, this raises ethical concerns since it involves unauthorized access and theft of property. This instance highlights the disparity between such methods and lawful white hat hacking that prioritizes accountable vulnerability disclosure practices.

He was given prison time, supervised release, and ordered to pay financial restitution by the court. This case emphasizes how the legal system’s approach is adapting with regards to cryptocurrency theft and highlights a growing demand for stronger regulations in this industry.

In case of suspicion regarding cybercrime involving cryptocurrency, reach out to authorities or utilize secure methods for conveying information to trustworthy publications.

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