On February 3, 2025, the U.S. Attorney’s Office for the Eastern District of New York (EDNY) unsealed an indictment against Andean Medjedovic, a 22-year-old Canadian national, for allegedly stealing approximately $65 million in cryptocurrency from two decentralized finance (DeFi) protocols, KyberSwap and Indexed Finance. Medjedovic is charged with wire fraud, violation of the Computer Fraud and Abuse Act (“CFAA”) for unauthorized damage to a protected computer, attempted Hobbs Act extortion, money laundering and money laundering conspiracy. This case highlights the growing risks and vulnerabilities in DeFi platforms, which remain attractive targets for sophisticated cybercriminals.
Understanding the Alleged Scheme
DeFi platforms like KyberSwap and Indexed Finance operate on blockchain networks and use “smart contracts” to manage user transactions. These smart contracts facilitate automated cryptocurrency exchanges by maintaining liquidity pools, which are funded by investors. The indictment alleges that Medjedovic, a Canadian national, manipulated these smart contracts to drain funds from these pools, defrauding investors in the process through two different exploits.