The U.S. accused a Canadian citizen of hacking KyberSwap and Indexed Finance

The U.S. Department of Justice has charged Canadian citizen Andean Medjedovich with cyberattacks on the KyberSwap and Indexed Finance crypto protocols. According to the investigation, he stole approximately $65 million and laundered the illegally obtained funds through cryptocurrency mixers and blockchain bridges.

How were the attacks carried out?

The indictment, filed on February 3 in a Brooklyn court, alleges that Medjedovich used complex fraud schemes. In October 2021, he allegedly stole $16.5 million by manipulating Indexed Finance smart contracts, and in November 2023, he used a similar method to steal $48.8 million from KyberSwap.

Prosecutors claim that the hacker borrowed hundreds of millions in digital tokens and executed trades that caused DeFi protocol algorithms to miscalculate prices. This allowed him to withdraw funds at inflated values, devaluing users' investments.

Extortion attempt

After hacking KyberSwap, Medjedovich allegedly extorted money from victims by offering a "fraudulent settlement" and threatening to delay negotiations. He demanded control over the protocol in exchange for returning 50% of the stolen assets.

Investigators claim that he and a relative laundered cryptocurrency through mixers and fake accounts. When some assets were frozen, he paid an undercover agent $85,000 in an attempt to regain access to the funds.

Medjedovich's whereabouts are unknown, and there is no information about his legal representation. The case remains in the spotlight of law enforcement amid the U.S. crackdown on cybercrime in DeFi.