U.S. Department of Justice Arrests Engineer Over $9M Crypto Theft

The U.S. Department of Justice (DOJ) arrested a information technologist connected ligament fraud and wealth laundering charges, alleging helium stole $9 cardinal worthy of crypto from an unnamed decentralized cryptocurrency exchange.

The DOJ alleged that Shakeeb Ahmed was capable to "fraudulently obtain" $9 cardinal worthy of crypto from an unnamed decentralized cryptocurrency speech (DEX) by creating fake pricing information to make fees that helium was past capable to withdraw. Police arrested Ahmed connected Tuesday.

"In July 2022, Ahmed carried retired an onslaught connected the Crypto Exchange by exploiting a vulnerability successful 1 of the Crypto Exchange’s astute contracts and inserting fake pricing information to fraudulently origin that astute declaration to make astir $9 cardinal dollars’ worthy of inflated fees that Ahmed did not legitimately earn, which fees Ahmed was capable to retreat from the Crypto Exchange successful the signifier of cryptocurrency," a DOJ property merchandise said.

The DEX successful question operates connected the Solana blockchain, the DOJ said. Ahmed allegedly took retired flash loans worthy "tens of millions of dollars," deposited them successful the DEX's liquidity pool, withdrew the funds and claimed a ample percent arsenic fees. He took retired astatine slightest 20 1 flash loans, according to a transcript of the indictment.

Ahmed past tried to launder the funds by converting them into antithetic cryptocurrencies, moving them crossed blockchains, converting into monero (XMR) and sending them done antithetic crypto exchanges, the DOJ alleged.

Ahmed besides offered to instrumentality astir of the funds to the DEX successful question provided the developers not scope retired to instrumentality enforcement, the DOJ said.

While the DOJ did not explicitly sanction the DEX, the statement matches past year's theft from Crema Finance, a Solana-based DEX. The attacker was capable to instrumentality much than $9 cardinal from the DEX past July, aboriginal returning astir $8 cardinal and keeping astir $1.7 million.

Other details successful the indictment besides suggest that Crema could beryllium the affected exchange. Ahmed allegedly work a quality nonfiction titled "[Crypto Exchange] Vulnerability Causes DeFi Clients to Lose Millions," matching an FXLeaders article.

Crema Finance developers could not beryllium instantly reached for comment.