Canadian Man Charged in $65M Cryptocurrency Hacking Schemes
A federal court in New York unsealed on Feb. 3 a five-count criminal indictment against Andean Medjedovic for allegedly exploiting KyberSwap and Indexed Finance to steal $65 million.
Accusations and Charges
- Medjedovic remains at large and has not been apprehended by law enforcement.
- Charges include wire fraud, unauthorized damage to a protected computer, attempted Hobbs Act extortion, money laundering conspiracy, and money laundering.
- Potential penalties range from 10 to 20 years in prison for different charges.
Exploitation of Smart Contracts
Court documents reveal that Medjedovic allegedly exploited automated smart contracts in the KyberSwap and Indexed Finance protocols between 2021 and 2023. By manipulating smart contract calculations, he was able to withdraw funds at artificial prices, causing losses to investors.
Money Laundering
- Medjedovic allegedly laundered the stolen proceeds through swaps, bridging transactions, and crypto mixers.
- He also collaborated with others to open crypto exchange accounts using false and borrowed identities to conceal the source of funds.
The Exploits
In November 2023, Medjedovic drained $49 million using the KyberSwap exploit and then attempted to extort the victims. He proposed gaining control of the KyberSwap protocol in exchange for returning half of the stolen assets.
KyberSwap committed to reimbursing affected users in December 2023 by offering grants from its treasury. The program began on Feb. 1, 2024, with 1,371 users refunded by Feb. 3, 2025.
Indexed Finance also fell victim to Medjedovic’s exploit in 2021, resulting in losses totaling $16 million. Both protocols have struggled to recover from the security breaches.
