A 22-year-old Canadian man has been charged with exploiting vulnerabilities in two decentralized finance protocols to swindle investors out of $65 million, according to federal court documents.
Andean Medjedovic allegedly used automated smart contracts to borrow hundreds of millions of dollars in digital tokens and engage in deceptive trading that allowed him to withdraw millions of dollars of investor funds at artificially low prices.
From 2021 to 2023, Medjedovic exploited vulnerabilities in the KyberSwap and Indexed Finance protocols, rendering the victims’ investments essentially worthless, according to court documents.
Medjedovic also allegedly laundered the proceeds of his fraudulent schemes through a series of transactions designed to conceal the source and ownership of the funds, including through swap transactions, “bridging transactions,” and the use of a digital assets “mixer.”
Additionally, Medjedovic attempted to extort the victims of the KyberSwap exploit through a sham settlement proposal, in which he demanded complete control of the KyberSwap protocol and the decentralized autonomous organization that oversaw the KyberSwap protocol in exchange for returning 50 percent of the digital assets that he fraudulently obtained through his scheme.
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 conspiracy, and one count of money laundering.
If convicted, Medjedovic faces a maximum penalty of 10 years in prison on the unauthorized damage to a protected computer count and 20 years in prison on each of the other counts.
Related Federal Cases
- Wall Street Firms, Financial Malfeasance, New York NY, 2023 · Washington
- Christopher Ferguson, PPE Scam, New York NY, 2023 · New Mexico
- Christopher Ferguson, Scheme to Inflate Order Numbers, New York NY,… · Washington
- Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · New York
- Kenneth Thom Pleads Guilty to Investment Scam, New York NY, 2026 · New York
Key Facts
- State: New York
- Category: Cybercrime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News