A Rockville man is facing federal charges tied to a massive cryptocurrency hack that allegedly drained tens of millions of dollars from a decentralized exchange.
Federal prosecutors in the Southern District of New York announced March 30 that Jonathan Spalletta, 36, has been charged with computer fraud and money laundering in connection with two 2021 cyberattacks targeting Uranium Finance, a decentralized cryptocurrency exchange. Spalletta, also known online as “Cthulhon” and “Jspalletta,” surrendered to authorities and is expected to appear before a U.S. Magistrate Judge in New York.
According to the indictment, Spalletta carried out two separate exploits in April 2021 by taking advantage of vulnerabilities in Uranium’s smart contracts. In the first incident on April 8, he allegedly manipulated transactions to repeatedly withdraw more cryptocurrency rewards than permitted, ultimately extracting about $1.4 million. Prosecutors say he later acknowledged the scheme in writing, describing it as a “crypto heist,” and attempted to legitimize part of the theft by negotiating a so-called “bug bounty,” allowing him to keep approximately $386,000 while returning the rest…