A young man #Canada is accused of attacking decentralized finance (DeFi) protocols to seize $65 million from investors, facing 5 charges but still on the run.

Hacker exploits DeFi vulnerabilities, stealing tens of millions of dollars.

The U.S. Department of Justice has just indicted Andean Medjedovic (22 years old, Canadian nationality) on charges of exploiting vulnerabilities in the KyberSwap and Indexed Finance platforms from 2021 to 2023 to misappropriate funds from investors, rendering their investments worthless.

Despite being indicted, Medjedovic is still on the run. U.S. police are coordinating with the Netherlands to apprehend this hacker.

Sophisticated hacking technique: From token swaps to money laundering

According to the indictment, Medjedovic executed a series of fraudulent transactions to deceive smart contracts, causing the system to miscalculate important financial metrics.

This hacker has:
✔ Borrowed hundreds of millions of dollars in cryptocurrency, then conducted disguised transactions for profit.
✔ Swapped stolen tokens for other digital assets.
✔ Transferred money between multiple blockchains using bridges.
✔ Used mixing tools to hide traces.
✔ Opened accounts on multiple exchanges using fake identities to launder money.

Notably, Medjedovic also created a detailed guide titled 'moneyMovementSystem' to instruct how to conceal transactions.

KyberSwap Attack: $48.8 Million Disappeared

In November 2023, Medjedovic continued to carry out a major hack targeting KyberSwap, a DeFi protocol on Ethereum, Arbitrum, and many other blockchains.

He has:
💥 Created errors in liquidity pools, causing the system to crash.
💰 Withdrawn a total of $48.8 million from 77 KyberSwap liquidity pools.
⚠ Subsequently, the hacker also extorted#Kyberswap with a fake settlement agreement.

The sentence could be up to 90 years in prison.

Medjedovic currently faces 5 charges, including:
🔸 Financial fraud
🔸 Computer sabotage
🔸 Extortion under the Hobbs Act
🔸 Money laundering (2 counts)

If convicted, this hacker could face 10 years in prison for computer sabotage and 20 years for each remaining charge. The total potential sentence could reach 90 years.

Warning: Law enforcement is cracking down hard on DeFi crime.

This incident occurs in the context of global law enforcement agencies ramping up efforts to combat financial crime on digital platforms.

In India, police #Delhi have just arrested another hacker related to the $235 million attack on the WazirX exchange.

💡 DeFi platforms and users need to be more vigilant about security vulnerabilities to avoid becoming victims of similar hacks.