Andean Medjedovic, 22, conducted sophisticated attacks on the crypto exchanges KyberSwap and Indexed Finance between 2021 and 2023. These platforms allow users to trade and exchange cryptocurrencies.
KyberSwap is developed by Kyber Network, a blockchain project led by two Vietnamese co-founders, Lợi Lưu and Victor Trần.
Andean Medjedovic (far right) in high school with friends
According to court documents, Andean Medjedovic stole a total of $65 million from the two cryptocurrency exchanges, including over $48 million from KyberSwap and $16 million from Indexed Finance.
The indictment states that Medjedovic borrowed tokens worth hundreds of millions of dollars and manipulated cryptocurrency prices through a series of transactions on the exchanges. He then withdrew the tokens to profit and defraud investors.
Prosecutors revealed that Medjedovic exploited vulnerabilities in the pricing algorithms on KyberSwap and Indexed Finance to carry out his fraudulent activities.
Medjedovic initiated these illegal activities late in 2023 and later offered to return half the stolen funds in exchange for control over KyberSwap. However, his demands were rejected.
The hacker’s attack caused significant damage to KyberSwap, forcing the project to cut more than 50% of its staff to compensate investors.
Despite being indicted in the U.S., Medjedovic remains at large and has not been apprehended.
“As individuals like Medjedovic exploit new technologies to harm investors, they must be held accountable no matter where they operate,” said John Durham, Acting U.S. Attorney for the Eastern District of New York.
“Cybercriminals are sometimes portrayed as heroes in popular culture, admired for their talent and intelligence. However, they are stealing money that isn’t theirs and breaking the law,” commented James E. Dennehy, Assistant Director of the FBI’s New York Field Office.
Andean Medjedovic is considered a prodigy in math and computer science, earning a master’s degree in mathematics from the University of Waterloo (Canada) at just 19.
However, shortly after receiving his master’s degree, Medjedovic fled Canadian authorities in 2021, facing charges of financial fraud, computer system attacks, extortion, and money laundering.
Currently, Medjedovic remains wanted. In a secret interview with Bloomberg, the hacker admitted he might have to “run for the rest of his life.”
Cryptocurrency is a type of digital currency not regulated by any government agency and can be traded online through exchanges.
The value of cryptocurrencies has surged in recent years, with Bitcoin reaching over $105,000 at the end of January. However, some cryptocurrencies are created with fraudulent intentions or experience rapid value drops, causing significant losses for many investors.
Security experts noted that crypto-related crime is becoming more active as the market grows.
Last September, U.S. police arrested two men for stealing $230 million in cryptocurrencies. Earlier this month, a founder of a French cryptocurrency exchange was kidnapped and ransomed.
