Andean Medjedovic, a 22-year-old Canadian, faces a five-count indictment for exploiting vulnerabilities in decentralized finance protocols KyberSwap and Indexed Finance, netting around $65 million from investors. Between 2021 and 2023, he manipulated automated smart contracts to withdraw funds at inflated prices, causing massive losses for investors. Additionally, he allegedly laundered the proceeds through multiple transactions designed to obscure the funds' origins. Medjedovic made an extortion attempt on the victims after the fraud, demanding control of KyberSwap in exchange for a portion of the stolen funds. He faces multiple serious charges, including wire fraud and money laundering.
Medjedovic borrowed hundreds of millions of dollars in digital tokens, which he used to engage in deceptive trading that he knew would cause the protocols' smart contracts to falsely calculate key variables.
Through his deceptive trades, Medjedovic was able to, and ultimately did, withdraw millions of dollars of investor funds from the protocols at artificial prices, rendering the victims' investments essentially worthless.
In around November 2023, after executing the KyberSwap exploit, Medjedovic also allegedly attempted to extort the victims of the KyberSwap exploit through a sham settlement proposal.
Medjedovic is charged with one count of wire fraud, one count of unauthorized damage to a protected computer, one count of attempted Hobbs Act extortion, one count of money laundering.
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