A 22-year-old Canadian national, Andean Medjedovic, has been indicted by the U.S. Department of Justice (DOJ) for allegedly orchestrating a $65 million hack targeting vulnerabilities in decentralized finance (DeFi) protocols.
Between 2021 and 2023, Medjedovic reportedly exploited smart contract flaws in major decentralized exchange aggregators such as KyberSwap and Indexed Finance.
His scheme involved manipulating DeFi mechanisms to withdraw investor funds at artificially inflated prices, draining liquidity pools and leaving investors with worthless assets.
The hack impacted victims worldwide, including in the United States, highlighting the persistent security risks that continue to plague DeFi platforms.
International Manhunt and Severe Legal Ramifications
Despite his indictment, Medjedovic remains a fugitive, with international law enforcement agencies actively working to locate him.
The Dutch National Police Cybercrime Unit and the Netherlands’ Public Prosecution Service are assisting U.S. authorities in their search.
DeFi-related financial crimes pose a significant challenge for investigators due to the borderless nature of blockchain transactions.
If captured and convicted, Medjedovic could face up to 10 years in prison for unauthorized damage to a protected computer, along with an additional 20 years per count for wire fraud, money laundering, and attempted extortion.
His case reflects a broader regulatory push to clamp down on crypto-related financial crimes, as authorities increase scrutiny on blockchain-based fraud and cybersecurity risks.
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Sophisticated Techniques Used to Evade Detection
Prosecutors allege that Medjedovic deployed highly advanced tactics to both execute the hack and obscure his illicit activities.
He reportedly borrowed hundreds of millions of dollars in digital assets, manipulated smart contract calculations to withdraw inflated sums, and quickly moved the stolen funds before detection.
To launder the stolen assets, Medjedovic is said to have used crypto swap services, cross-chain bridges, and mixing platforms to obfuscate the transaction trail.
Additionally, he and his associates allegedly created crypto exchange accounts under false identities, making it even harder for authorities to track the movement of funds.
His techniques demonstrate a deep understanding of blockchain mechanics, shedding light on how cybercriminals exploit decentralized systems to execute and conceal fraudulent activities.
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Undercover Sting Operation Provides Key Evidence
Investigators uncovered critical evidence when they discovered Medjedovic’s detailed playbook, “moneyMovementSystem,” outlining step-by-step instructions on laundering stolen funds and evading detection.
The case took a dramatic turn when Medjedovic attempted to recover some of his frozen assets after a blockchain bridge blocked $500,000 of the stolen funds.
In a major misstep, he unknowingly contacted an undercover law enforcement agent posing as a blockchain developer and paid them $80,000 to unlock the funds.
The sting operation provided authorities with direct proof of his illicit activities, further solidifying the charges against him.
His case is a stark reminder of the growing sophistication of cybercrime in the DeFi space and the need for stronger security protocols in the blockchain industry.
Rising Cyber Threats in the Crypto Space
Medjedovic’s case is just one of several high-profile crypto hacks in recent months. Blockchain investigator ZachXBT recently exposed a $3.5 million fraud scheme involving compromised social media accounts used to promote scam memecoins.
Similarly, crypto casino Metawin suffered a $4 million loss after hackers exploited its “frictionless withdrawal system.”
Meanwhile, SlowMist founder Cosine has warned that Privy-based wallets without two-factor authentication (2FA) remain at high risk, emphasizing that attackers can drain assets with a single click.
These incidents highlight the increasing frequency of crypto-related cybercrimes and the urgent need for stronger security measures across the blockchain ecosystem.
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