US prosecutors have charged Shakeeb Ahmed, a 34-year-old senior security engineer, with stealing approximately $9 million in crypto by exploiting vulnerabilities on a decentralized finance (DeFi) platform. Ahmed allegedly manipulated a smart contract on the platform to insert fake pricing data and generate inflated fees, which he then withdrew in cryptocurrency. This marks the first criminal case involving an attack on a DeFi smart contract. The incident highlights the increased regulatory scrutiny on DeFi platforms, which have been touted for their decentralization but are now facing growing concerns about security and potential criminal activity. Authorities have also pursued other cases against DeFi actors, signaling their commitment to bring fraudsters to justice. The charges against Ahmed underscore the need for continuous security audits and regulatory measures to protect users and investors in the DeFi space.

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