
Key Points:
- U.S. prosecutors indicted Andean Medjedovic for hacking KyberSwap and Indexed Finance, stealing nearly $65 million through market manipulation.
- Medjedovic allegedly attempted to extort KyberSwap administrators and launder stolen funds with a relative’s help and a crypto mixer.
U.S. federal prosecutors have charged a Canadian man with hacking two cryptocurrency platforms, KyberSwap and Indexed Finance, stealing nearly $65 million.
Read more: Crypto Hacks 2024 Hacken Report Overview
Canadian Hacker Indicted in KyberSwap and Indexed Finance Hack
The Justice Department unsealed an indictment Monday, accusing 22-year-old Andean Medjedovic of wire fraud, hacking, money laundering, and extortion.
Medjedovic, who holds a master’s degree in mathematics from the University of Waterloo, allegedly exploited vulnerabilities in decentralized finance (DeFi) protocols KyberSwap and Indexed Finance. According to prosecutors, he used borrowed cryptocurrency to manipulate market prices and siphon funds from liquidity pools.
The indictment states that in 2023, Medjedovic executed a sophisticated scheme on KyberSwap, manipulating liquidity pools through calculated trades that caused the platform to “glitch,” enabling him to steal tens of millions in digital assets. A similar tactic was allegedly used earlier on Indexed Finance, where he artificially altered prices to extract funds.
Extortion, Money Laundering, and an Undercover Sting Operation
After the KyberSwap hack, Medjedovic allegedly attempted to extort the platform’s administrators, offering to return half of the stolen funds in exchange for full control of the protocol and its governance organization. Prosecutors also claim he sought to launder the stolen cryptocurrency using an unnamed mixer and the assistance of a relative.
Investigators discovered files on Medjedovic’s computer detailing his plans, including attempts to flee Canada and instructions for securing a laptop for storing illicit funds. His efforts to move the stolen assets were ultimately disrupted when he unknowingly transacted with an undercover agent, paying over $86,000 in a laundering attempt.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |