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Canadian national Andean Medjedovic faced charges from the United States Department of Justice, accused of committing wire fraud, computer hacking, attempted extortion, and money laundering. These charges are in connection with the alleged theft of approximately $65 million worth of cryptocurrency from two decentralized finance (DeFi) protocols, KyberSwap and Indexed Finance.
According to the Justice Department, Medjedovic allegedly exploited smart contract vulnerabilities within the liquidity pools of these DeFi protocols. He is accused of stealing about $48.8 million from KyberSwap and $16.5 million from Indexed Finance. The alleged cybercrimes have led to significant financial losses for investors in these liquidity pools.
IRS-CI New York Special Agent in Charge Harry Chavis, Jr. described the fraud as sophisticated, highlighting the use of smart contract vulnerabilities to siphon millions in cryptocurrency. The statement from the Justice Department emphasized the severe impact on liquidity pool investors who were left at a loss due to the hacks.
The KyberSwap incident occurred on November 22, 2023, when Medjedovic reportedly targeted the Elastic (NYSE:ESTC) Pools liquidity solution. In response to the hack, KyberSwap offered a 10% bounty, which led to the recovery of $4.7 million in funds. However, the hacker escalated demands, seeking complete control over the company managing KyberSwap, as well as access to KyberDAO, the platform’s governance mechanism, and detailed company information, including its financial and structural data.
Indexed Finance suffered an attack on its liquidity pool in October 2021, with subsequent attacks in 2023 prompting a shift in control from its DAO to the protocol’s founders. As reported, the founders intend to reimburse the victims of the 2021 exploit with the remaining treasury funds.
Despite the charges, Medjedovic has not been apprehended and remains at large, as noted in the Justice Department’s release. The case continues to develop as authorities seek to locate and prosecute the accused individual.
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