4 months ago
A national tribunal successful New York unsealed connected Feb. 3 a five-count transgression indictment against Andean Medjedovic for allegedly exploiting KyberSwap and Indexed Finance to bargain $65 million.
Medjedovic has not been apprehended by instrumentality authorities arsenic of Feb. 3 and remains astatine large.
According to a connection from the US Department of Justice, Medjedovic faces charges of ligament fraud, unauthorized harm to a protected computer, attempted Hobbs Act extortion, wealth laundering conspiracy, and wealth laundering.
The complaint of unauthorized harm to a protected machine carries a maximum punishment of 10 years successful prison, portion the different counts transportation a imaginable 20-year sentence.
Court documents authorities that Medjedovic allegedly exploited automated astute contracts successful the KyberSwap and Indexed Finance protocols betwixt 2021 and 2023. Medjedovic is accused of borrowing tokens worthy hundreds of millions of dollars to manipulate astute declaration calculations.
This strategy allegedly allowed him to retreat funds astatine artificial prices, rendering investors’ holdings worthless.
Authorities alleged that Medjedovic laundered the proceeds done swaps, bridging transactions, and crypto mixers. He is besides accused of conspiring with others to unfastened accounts astatine crypto exchanges utilizing mendacious and borrowed identities to obscure the funds’ origins.
The exploits
In November 2023, aft executing the KyberSwap exploit and draining astir $49 million, Medjedovic allegedly attempted to extort the victims.
He proposed a settlement successful which helium would summation power of the KyberSwap protocol and it’s governing decentralized autonomous enactment (DAO) successful speech for returning fractional of the stolen assets.
In December 2023, KyberSwap committed to reimbursing affected users, offering grants from its treasury adjacent to the dollar worth the idiosyncratic mislaid erstwhile the protocol’s liquidity pools were drained. The programme became effectual connected Feb. 1, 2024, with KyberSwap announcing that 1,371 users were refunded connected Feb. 3, 2025.
The incidental besides affected the decentralized speech aggregator, which cut its workforce successful half aboriginal that month.
Medjedovic is besides the alleged perpetrator of Indexed Finance’s exploit taking spot successful 2021. Two of the protocol’s decentralized indexes were exploited portion rebalancing, resulting successful losses totaling $16 million.
Both protocols person yet to retrieve their full worth locked (TVL) connected the protocols pursuing the information breaches.
The station KyberSwap exploiter gets five-count transgression indictment aft stealing $65M appeared archetypal connected CryptoSlate.
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