On July 11th, the US Department of Justice (DOJ) arrested a security engineer named Shakeeb Ahmed on charges of wire fraud and money laundering. Ahmed is accused of stealing $9 million worth of digital assets from a decentralized cryptocurrency exchange (DEX).
The DOJ alleges that Shakeeb Ahmed was able to “defraud” $9 million worth of digital assets from a decentralized cryptocurrency exchange by creating fake valuation data to generate fees that he could later withdraw.
Ahmed is also accused of executing “flash loans” worth “tens of millions of dollars,” depositing them into the liquidity pool of the DEX, withdrawing the funds, and demanding a large percentage as fees. It is alleged that he took out at least 21 flash loans.
Afterwards, Ahmed attempted to launder the funds by converting them into various cryptocurrencies, transferring them across blockchains, converting them into Monero (XMR), and sending them through different cryptocurrency exchanges.
Before being apprehended, Ahmed offered to return the majority of the funds to the mentioned DEX on the condition that the developers do not contact law enforcement agencies.
Ahmed took over 9 million USD from the DEX, then returned around 8 million USD and kept approximately 1.7 million USD for himself.
see more : Quantumania, the giant ecosystem of the Arabs