A jury has convicted a 36-year-old man from Rockville, Maryland, for unlawfully acquiring $50 million from a cryptocurrency exchange by taking advantage of its software vulnerabilities. The verdict was reached following a six-day trial held in New York.

The Crime

Jonathan Spalletta was found guilty on charges of computer fraud and money laundering. He executed multiple hacks against Uranium Finance in April 2021. Initially, he exploited a bug in the system, allowing him to withdraw $1.4 million in cryptocurrency during the first incident.

In a subsequent breach, Spalletta targeted the exchange’s liquidity pools, extracting a staggering $53.3 million, which ultimately forced Uranium Finance to cease operations due to significant financial losses.

Trial Evidence

During the trial, prosecutors presented various pieces of evidence, including a message that Spalletta sent to an associate. In this communication, he claimed responsibility for a “crypto heist” and remarked that “Crypto is all fake internet money anyway.” This statement showcased his mindset about the legitimacy of his actions.

Consequences of the Theft

Subsequent investigations resulted in law enforcement seizing approximately $31 million in cryptocurrency believed to have been taken from Uranium Finance. Reports indicate that Spalletta utilized part of the stolen funds to purchase collectible items, such as Pokémon and Magic: The Gathering cards, with some sets valued at hundreds of thousands of dollars.

Possible Sentences

The maximum penalty for the charge of computer fraud is set at 10 years of imprisonment. Additionally, the conviction for money laundering could lead to a sentence of up to 20 years. The court’s decision on sentencing is yet to be announced.