- US prosecutors have charged a Maryland man over alleged exploits that drained more than US$50 million from Uranium Finance.
- Two smart contract attacks in April 2021 reportedly emptied liquidity pools and forced the exchange to shut down.
- Authorities say proceeds were laundered and spent on rare collectibles, with US$31 million later seized.
A federal indictment has been unsealed charging a Maryland man over alleged hacks that targeted Uranium Finance and led to losses of more than US$50 million (AU$73 million). The accused, Jonathan Spalletta, faces charges of computer fraud and money laundering, with a combined maximum sentence of 30 years in prison.
Prosecutors allege the incidents occurred in April 2021 and involved exploiting flaws in the platform’s smart contracts to extract funds unlawfully. In the first attack, Spalletta is said to have used a series of deceptive transactions to withdraw inflated rewards, securing about US$1.4 million (AU$2.04 million).
A subsequent exploit reportedly allowed him to access approximately US$53.3 million (AU$77.82 million) from 26 liquidity pools, which contributed to the exchange ceasing operations due to insufficient funds. Authorities describe the activity as methodical, involving repeated unauthorised transfers over a period of time.
Related: India Arrests Darwin Labs Co-Founder in $2.4B GainBitcoin Scam Investigation
Tracing the Stolen Funds
US Attorney Jay Clayton alleges the defendant repeatedly took advantage of technical vulnerabilities to divert funds, resulting in substantial losses and the collapse of the exchange, while also referencing statements attributed to him that downplayed the value of crypto assets.
Stealing from a crypto exchange is stealing – the claim that ‘crypto is different’ does not change that. For the victims, there is nothing different about having your money taken. Spalletta cost real victims real losses of tens of millions of dollars, and now he’s under real arrest.
Jay Clayton, US AttorneyThe indictment also alleges that the proceeds were laundered through multiple cryptocurrency transactions, including the use of mixing services to obscure their trail. Some of the funds were then used to purchase high-value items such as rare trading cards and historical artefacts.
Authorities Recover High-Value Artefacts
Seized assets include a “Black Lotus” card and sealed Alpha booster packs, both from Magic: The Gathering, valued at about US$500,000 (AU$728,320) and US$1.51 million (AU$2.20 million) respectively.
Authorities also recovered a first-edition Pokémon base set estimated at US$750,000 (AU$1.10 million), a piece of fabric from the Wright brothers’ aircraft that was later carried to the Moon during the Apollo 11 mission, along with an ancient Roman coin linked to the assassination of Julius Caesar.
Law enforcement later recovered cryptocurrency worth around US$31 million (AU$45.26 million) linked to the alleged scheme in February 2025. Officials say the case underscores ongoing vulnerabilities in digital asset platforms and the increasing complexity of financial cybercrime.
Related: New ‘Ethereum Economic Zone’ Proposal Aims to Unite Fragmented Layer-2 Ecosystem
Credit: Source link
