- A Canadian national has been charged with wire fraud, computer hacking, and attempted extortion related to the theft of approximately $65 million in cryptocurrency
- Andean Medjedovic allegedly exploited vulnerabilities in the KyberSwap and Indexed Finance decentralized finance protocols
- Medjedovic is accused of laundering the stolen funds and is currently at large
A federal grand jury in Brooklyn has indicted Andean Medjedovic, a Canadian citizen, for allegedly orchestrating a $65 million cryptocurrency theft. Prosecutors claim that Medjedovic exploited security flaws in two decentralized finance (DeFi) platforms, Kyberswap and Indexed Finance, to siphon off approximately $65 million. He faces multiple charges, including wire fraud, computer hacking, attempted extortion, and money laundering, although he remains at large.
Medjedovic Targeted DeFi Platforms
According to the indictment, Medjedovic targeted KyberSwap and Indexed Finance, two DeFi platforms that facilitate cryptocurrency transactions without traditional banks, after allegedly discovering weaknesses in their smart contracts. He took advantage of these weaknesses in November 2023, withdrawing massive sums of cryptocurrency from unsuspecting investors, totalling some $65 million. He later demanded control of the Kyberswap protocol, which was denied him.
“Andean Medjedovic’s alleged actions highlight the vulnerabilities in decentralized finance and the severe consequences of exploiting them,” U.S. Attorney Breon Peace said in a statement. “We remain committed to holding cybercriminals accountable, regardless of where they operate.”
Extortion and Money Laundering Accusations
Beyond the initial theft, prosecutors say Medjedovic attempted to extort additional funds from the affected platforms. The indictment alleges that after executing the hacks, he demanded payment in exchange for not launching further attacks or publicly exposing the vulnerabilities. He is also accused of laundering the stolen assets through a series of transactions designed to obscure the origins of the funds.
“This was a sophisticated fraud that exploited vulnerabilities in ‘smart contracts’, resulting in the theft of millions of dollars in cryptocurrency,” said Internal Revenue Service Criminal Investigation (IRS-CI) New York Special Agent in Charge Chavis. Medjedovic remains at large as authorities continue efforts to locate him following the grand jury indictments.
