Shakeeb Ahmed, a former Amazon security engineer, has been sentenced to three years in prison for executing the first-ever smart contract hack.

Ahmed exploited his expertise in reverse engineering and blockchain audits to steal over $12 million in cryptocurrencies from decentralized exchanges.

The stolen funds were laundered through complex methods to disguise their origins.

The court ordered Ahmed not only to serve prison time but also to forfeit the stolen assets and pay $5 million in restitution.

Ahmed's actions destabilized cryptocurrencies, causing the NIRV stablecoin to depeg and the ANA coin to drop in value by 85%.

U.S. Attorney Damian Williams highlighted the sentencing as a deterrent, underscoring that destructive cyber hacks will result in incarceration and forfeiture.

The conviction represents a landmark in crypto-related law enforcement, demonstrating the increasing ability and resolve of authorities to pursue and prosecute cybercrime in the blockchain space.