According to a federal indictment unsealed on February 3, a Canadian national faces charges related to the theft of $65 million in cryptocurrency. Accused Canadian citizen Andean Medjedovic is believed to have abused security weaknesses in KyberSwap and Indexed Finance from 2021 through 2023. Law enforcement officials are still seeking Medjedovic, who remains free after his detention eluded them.
The United States Department of Justice prosecuted Medjedovic for wire fraud, damaging a protected computer illegally, money laundering, and extortion. Legal prosecutors state that Medjedovic used his control of smart contracts to steal money through false price manipulation, destroying many investors’ digital assets. The authorities suggest Medjedovic used stolen money to pass through crypto mixers and created fraudulent accounts to launder it.
As part of his criminal plan, Medjedovic worked with other individuals to hide the source of the stolen money through fake identification. Dutch authorities investigated the case with the FBI, the IRS, the SEC, and the Homeland Security Department. Law enforcement documents revealed Medjedovic had help from a family member who joined him in laundering stolen money.
Medjedovic Exploited KyberSwap for $49 Million
A major breach occurred on KyberSwap in November 2023, resulting in hackers emptying $49 million worth of funds from protocol pools. The investigators claim Medjedovic borrowed substantial token amounts to carry out deception against smart contract automation throughout the process. The malware allowed Medjedovic to withdraw funds under artificial conditions, resulting in liquidity providers’ loss.
Court documents show that Medjedovic attempted to blackmail KyberSwap administrators through negotiations after the breach. Medjedovic offered to return half of the stolen funds as his condition for taking complete authority over KyberSwap platform control and its decentralized autonomous organization. The law enforcement believes that the stolen funds allowed Medjedovic to coerce operators into compliance with his instructions.
KyberSwap aimed to reimburse its affected users using funds from its treasury reserves. The compensation grants started on February 1, 2024, and the 1,371 users received funds on February 3, 2025. The exchange aggregator workforce of KyberSwapwas reduced to half after the breach resulted in financial challenges.
Indexed Finance Exploit Resulted in $16 Million Loss
Medjedovic is also accused of orchestrating the 2021 attack on Indexed Finance, leading to $16 million in losses. The exploit targeted two of the protocol’s decentralized indexes while they were undergoing rebalancing. Prosecutors allege that Medjedovic manipulated the process, allowing him to withdraw funds at inflated valuations.
The attack severely damaged Indexed Finance’s liquidity and investor confidence. Medjedovic allegedly used tactics similar to the KyberSwap breach, exploiting weaknesses in automated smart contracts. Despite efforts to recover, the platform has yet to regain its previous total value locked.
Authorities claim Medjedovic concealed his identity during and after the Indexed Finance hack. Investigators found evidence that he used multiple crypto wallets, swaps, and mixers to obfuscate the movement of stolen funds. Indexed Finance has struggled to recover, and its community remains wary of further attacks.
Money Laundering and Use of Crypto Mixers
The indictment states that Medjedovic laundered stolen funds through swaps, bridging transactions, and crypto mixers. Prosecutors allege that he conspired with others to open accounts at various exchanges using false and borrowed identities. According to authorities, these actions were meant to make it difficult to trace the illicit funds.
Investigators believe Medjedovic moved funds across multiple blockchain networks to avoid detection. Law enforcement agencies have worked closely with financial crime units to track the movement of stolen assets. Despite these efforts, much of the stolen cryptocurrency remains unrecovered.
In court documents, Medjedovic’s relative is identified as an accomplice in the money laundering scheme. The person allegedly assisted Medjedovic in converting stolen funds into different assets. Authorities continue to investigate whether additional individuals facilitated the financial transactions.
International Efforts to Apprehend Medjedovic
The FBI, the Department of Homeland Security, the SEC, and the IRS work under Dutch authorities to track down Medjedovic. Public authorities at the Dutch Public Prosecution Service and the Cybercrime Unit supported the ongoing investigation. International cooperation is essential since authorities need to find and arrest the suspect.
Based on his four significant charges, Medjedovic’s total possible prison period is 30 years, while the fifth charge carries a maximum sentence of 10 years. According to prosecutors, his suspected actions substantially damaged investors and cryptocurrency platform operations. The authorities request public cooperation in providing details about Medjedovic’s current whereabouts.
The ongoing criminal investigation has failed to detain Medjedovic, who continues to evade detection regarding his present location. Security forces in law enforcement keep an eye on cryptocurrency transactions to detect any suspicious movement of stolen funds. According to this case, dealing with cybercrimes in decentralized finance platforms has become increasingly complex to combat.
Conclusion
The criminal indictment against Andean Medjedovic reveals the security weak points within decentralized finance systems. Security authorities charge him with leading the assaults against KyberSwap and Indexed Finance, which resulted in multimillion-dollar financial losses. Search operations for Medjedovic continue while the targeted platforms attempt to restore their platforms.
KyberSwap has started compensating affected users, yet its future financial stability remains unstable. The 2021 security breach has made it very difficult for Indexed Finance to win back investor trust. Law enforcement’s priority includes tracking the fugitive while pursuing his arrest.
FAQs
Who is Andean Medjedovic?
Andean Medjedovic is a Canadian national accused of stealing $65 million in cryptocurrency by exploiting vulnerabilities in KyberSwap and Indexed Finance.
What are the charges against Medjedovic?
He faces wire fraud charges, unauthorized damage to a protected computer, money laundering, and extortion.
How much did Medjedovic allegedly steal from KyberSwap?
He is accused of stealing approximately $49 million from KyberSwap in November 2023.
What was the impact of the KyberSwap exploit?
The attack drained liquidity pools, forcing KyberSwap to reimburse users and cut its workforce by half.
What was the Indexed Finance exploit?
In 2021, Medjedovic allegedly manipulated the rebalancing of Indexed Finance’s decentralized indexes, stealing $16 million.
References
The Bit Journal – Read More