The U.S. Department of Justice arrested a security engineering on charges of wire fraud and money-laundering, alleging that he stole crypto worth $9 million from an anonymous decentralized cryptocurrency exchange.

According to the DOJ, Shakeeb Ahmad was able “fraudulently” obtain $9 million in crypto from a decentralized cryptocurrency exchange that was not named by creating false pricing data that generated fees which he then was able withdraw. Ahmed was arrested by police on Tuesday.

In July 2022 Ahmed launched an attack against the Crypto Exchange, exploiting a weakness in one of Crypto Exchange’s Smart Contracts and inserting false pricing data in order to fraudulently cause this smart contract to generate approximately nine million dollars worth of inflated fee that Ahmed did earn legitimately, which fees Ahmed could withdraw from the Crypto Exchange as cryptocurrency,” said a DOJ Press Release.

DOJ: The DEX that is in question uses the Solana Blockchain. Ahmed is accused of taking out “tens and millions” of dollars in flash loans, depositing them into the DEX liquidity pool. He then allegedly withdrew funds from the DEX and claimed large percentages as fees. According to the copy of his indictment, he took out at least 21 flash loans.

The DOJ alleges that Ahmed tried to launder funds by converting the money into different cryptocurrencies and moving them across different blockchains. He also converted the money into monero (XMR), before sending it through different crypto exchanges.

The DOJ reported that Ahmed offered to return the majority of the money to the DEX if the developers did not contact law enforcement.

The DOJ didn’t name the DEX but the description is similar to the theft that occurred last year from Crema Finance in Solana. The attacker stole more than $9million from the DEX in July last year, later returned around $8 million and kept about $1.7million .

The indictment contains other details that suggest Crema may be the exchange in question. Ahmed is said to have read an article entitled “[Crypto Exchange] vulnerability causes DeFi clients to lose millions,” which matched a FXLeaders article.

Crema Finance could not be reached immediately for comment.

Aoyon A. Ashraf is the editor.