KyberSwap exploiter gets five-count criminal indictment after stealing $65M
KyberSwap exploiter will get 5-count criminal indictment after stealing $65M KyberSwap exploiter will get 5-count criminal indictment after stealing $65M
Andean Medjedovic is accused of exploiting DeFi protocols KyberSwap and Indexed Finance.
Duvet art work/illustration by capability of CryptoSlate. Image entails mixed swear that would possibly well also encompass AI-generated swear.
A federal courtroom in Unique York unsealed on Feb. 3 a 5-count criminal indictment against Andean Medjedovic for allegedly exploiting KyberSwap and Indexed Finance to take $65 million.
Medjedovic has not been apprehended by law authorities as of Feb. 3 and remains at sizable.
In keeping with an announcement from the US Department of Justice, Medjedovic faces costs of wire fraud, unauthorized damage to a safe computer, attempted Hobbs Act extortion, money laundering conspiracy, and money laundering.
The payment of unauthorized damage to a safe computer carries a maximum penalty of 10 years in penal advanced, whereas the alternative counts raise a skill 20-yr sentence.Â
Court docket documents explain that Medjedovic allegedly exploited computerized perfect contracts within the KyberSwap and Indexed Finance protocols between 2021 and 2023. Medjedovic is accused of borrowing tokens price a entire bunch of millions of bucks to govern perfect contract calculations.Â
This technique allegedly allowed him to withdraw funds at man made costs, rendering merchants’ holdings worthless.Â
Authorities alleged that Medjedovic laundered the proceeds through swaps, bridging transactions, and crypto mixers. He can also be accused of conspiring with others to begin accounts at crypto exchanges utilizing counterfeit and borrowed identities to obscure the funds’ origins.
The exploits
In November 2023, after executing the KyberSwap exploit and draining roughly $49 million, Medjedovic allegedly attempted to extort the victims.Â
He proposed a settlement in which he would accomplish serve a watch on of the KyberSwap protocol and it’s governing decentralized independent organization (DAO) in alternate for returning half of the stolen resources.
In December 2023, KyberSwap dedicated to reimbursing affected users, offering grants from its treasury equal to the buck stamp the particular person lost when the protocol’s liquidity swimming pools had been drained. This technique grew to change into effective on Feb. 1, 2024, with KyberSwap asserting that 1,371 users had been refunded on Feb. 3, 2025.
The incident also affected the decentralized alternate aggregator, which reduce its team in half later that month.
Medjedovic can also be the alleged perpetrator of Indexed Finance’s exploit taking situation in 2021. Two of the protocol’s decentralized indexes had been exploited whereas rebalancing, ensuing in losses totaling $16 million.
Every protocols dangle but to accept better their total stamp locked (TVL) on the protocols following the safety breaches.
Gino Matos
Gino Matos is a law college graduate and a seasoned journalist with six years of abilities within the crypto commerce. His abilities essentially makes a speciality of the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
Newest US Tales
Source credit : cryptoslate.com
