Federal prosecutors in the United States have accused a Canadian subject of utilizing vulnerabilities in two decentralized financial protocols, claiming that he stole millions in cryptocurrency and tried to cover his traces.
Andes Medjedovic, graduated from the University of Waterloo Mathematics, has been charged for wire fraud, computer hacking, attempted extortion and money laundering in connection with the Kyberswap and indexed financial exploits, the Ministry of Justice, the Ministry announced On February 3.
According to the accusationsMedjedovic clever contracts on both platforms manipulated, using misleading transactions to mislead automated systems to incorrectly calculate key values. By exploiting these defects, he is said to have played $ 48.8 million of Kyberswap in 2023 and wiped $ 16.5 million from the indexed finances in 2021.
Because of his misleading transactions, Medjedovic succeeded in “withdrawing millions in investor funds at artificial prices,” said the indictment. This left victims with effective worthless investments.
Public Prosecutors added that Medjedovic had carefully planned the Kyberswap exploits for several months, with a folder maintaining with files such as “Kyber_Kill” and “Templatexploit”.
He created a “Pool -Hitlijst” to identify liquidity pools to strategically target and Timed the attack, where notes are written as “Find time to strike! CEO is in HO -Chi.” He even calculated the optimal time for The attack to coincide when Americans and Europeans would probably sleep.
After the attack, public prosecutors say that Medjedovic tried to squeeze Kyberswap developers, investors and DAO members by demanding control over the protocol in exchange for returning 50% of the stolen funds.
At the same time he worked to cover his spurs. Medjedovic and an employee reportedly washed the stolen crypto by crypto mixers and blockchain bridges, causing the funds to shuffled over several networks to cover up their origins. He also opened accounts on crypto exchanges using fake identities, in an attempt to liquidate his participations without increasing red flags.
In addition, when a bridge protocol froze its transactions, Medjedovic would have paid an undercover law enforcement agent $ 85,000 – supervising a developer was a developer who could circumvent the restrictions and unlock $ 500,000 of his frozen crypto.
If convicted, Medjedovic is confronted with significant fines, including a maximum of 20 years in prison for every census of wire fraud, attempted extortion and money laundering, as well as 10 years for unauthorized damage to a protected computer.
Legal enforcement agencies, including the Dutch National Police Cybercrime Unit and American prosecutors, continue to chase Medjedovic, which remains in general.
On December 20, 2023, Kyberswap announced a Treasury program to compensate users who have been affected by the hack.
In a recent one. X Post, the protocol said that the subsidy is completely distributed among 1,371 recipients. (See below.)
