Summary
Nirvana V1 was a Solana-based algorithmic stablecoin and yield protocol that operated twin tokens: ANA (an algorithmic metastable wealth token) and NIRV (a decentralized stablecoin). On July 28, 2022, the protocol was catastrophically exploited via a flash loan attack that drained approximately $3.5 million — representing nearly all protocol reserves — causing both tokens to collapse and forcing a permanent shutdown. The attacker, Shakeeb Ahmed, was later identified, arrested, and convicted in the first-ever U.S. criminal prosecution for hacking a smart contract, and was sentenced to three years in prison in April 2024.
Connected Entities
1 entities · 10 linked investigationsTimeline(10 events)
2022-07-02
Shakeeb Ahmed conducts first hack, exploiting Crema Finance (a separate Solana DEX) for approximately $9 million using fake pricing data to generate inflated fees via flash loans.
2022-07-28
Nirvana V1 flash loan exploit: Shakeeb Ahmed drains approximately $3.5–3.6 million from Nirvana Finance treasury using price manipulation on the ANA smart contract. Stolen funds bridged to Ethereum via Wormhole and converted to DAI.
2022-07-28
Nirvana Finance suspends trading. ANA token falls over 85%; NIRV stablecoin depegs to approximately $0.08. Protocol announces loss of all collateral via Telegram.
2022-07-28
Nirvana Finance offers attacker a white-hat bounty of up to $600,000 in exchange for return of funds. Attacker counter-demands $1.4 million. No agreement reached.
2022-08-01
Nirvana Finance shuts down permanently following loss of all treasury reserves.
2023-07-11
U.S. DOJ (SDNY) arrests Shakeeb Ahmed and charges him with wire fraud and money laundering related to both the Crema Finance and Nirvana Finance hacks. Case described as first-ever U.S. criminal prosecution for hacking a smart contract.
2023-12-14
Shakeeb Ahmed pleads guilty to one count of computer fraud before U.S. Magistrate Judge Ona T. Wang (SDNY). Agrees to forfeit $12.3 million and pay over $5 million in restitution.
2024-04-12
Shakeeb Ahmed sentenced to 3 years in federal prison plus 3 years supervised release. Ordered to forfeit $12.3 million and pay restitution of over $5 million. First-ever criminal conviction for hacking a smart contract.
2024-06-04
Approximately $2.6 million returned to Nirvana Finance following enforcement of forfeiture order, as confirmed by TRM Labs.
2024-12-17
Nirvana Finance V2 launches publicly. Team opens compensation claims for V1 hack victims based on pro-rata share of recovered $2.6 million. Protocol pledges 10% of V2 fees to V1 victims in perpetuity.
Decision Log
- hash: R64maftzv6omyZ6rEUeUoAhm99vKAigvb36rGYD4q7k
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:48 AM
last updated: 5/28/2026, 5:25:06 PM
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