A 22-year-old Canadian math prodigy, Andean Medjedovic, has been indicted for allegedly stealing around $65 million from two decentralized finance platforms, KyberSwap and Indexed Finance. He reportedly exploited vulnerabilities in these protocols, using deceptive trades to drain funds from liquidity pools. Medjedovic is also accused of attempting to extort victims and laundering the stolen crypto through various blockchain networks. Despite being charged with serious crimes, including wire fraud and money laundering, he remains in hiding. Previously, he was involved in a legal dispute in Canada regarding his actions. If convicted, he could face significant prison time. The allegations have yet to be proven in court, and he is presumed innocent until proven guilty.
New York Authorities Charge Canadian Math Prodigy in $65 Million DeFi Scheme
In a striking legal case, a 22-year-old Canadian math genius, Andean Medjedovic, has been indicted on multiple charges related to a massive fraud scheme involving decentralized finance (DeFi) platforms. The indictment, unsealed today by federal prosecutors in New York, accuses Medjedovic of exploiting vulnerabilities in DeFi protocols KyberSwap and Indexed Finance to unlawfully siphon an estimated $65 million from investors.
Understanding the Allegations
Prosecutors claim that Medjedovic manipulated the automated smart contracts of KyberSwap and Indexed Finance, aiming to enrich himself at the expense of countless investors. Notably, he allegedly drained $48.4 million from KyberSwap Elastic liquidity pools in November 2023. According to officials, he borrowed large amounts of digital tokens and executed numerous misleading trades, which led the protocols’ smart contracts to provide false calculations. This allowed him to divert significant funds to his controlled wallets.
Medjedovic referred to his fraudulent actions as a “glitch” and reportedly described the liquidity as “fake.” Additionally, he is charged with stealing $16.5 million from liquidity pools associated with Indexed Finance in October 2021.
Attempts to Evade Capture
The indictment also reveals that Medjedovic allegedly contacted victims of his scams, attempting to extort them while laundering the stolen assets through complex transactions across various blockchain networks. Authorities disclosed that he sought help from Layer 2 bridges to transfer approximately $42 million in stolen cryptocurrencies, while simultaneously trying to offer bribes to expedite the process.
In a peculiar twist, prosecutors illustrated Medjedovic’s calculated approach after the exploit, indicating he prepared a plan to cover his tracks, including notes on destroying evidence and relocating.
Past Legal Troubles
This is not Medjedovic’s first run-in with the law. He was previously sued in Canada by Cicada 137 LLC in 2021 for his alleged role in Indexed Finance losses. During earlier court proceedings, he reportedly went underground after failing to appear at hearings, with his family stating they were unaware of his whereabouts. It is believed that he claimed to have shifted to “whitehat work,” a term often used for ethical hacking.
What’s Next for Medjedovic?
Now facing serious charges including wire fraud, unauthorized computer damage, Hobbs Act extortion, and money laundering, Medjedovic could face significant prison time if convicted. The maximum penalties include ten years for computer damage and up to twenty years for other charges.
As the legal process unfolds, it will be crucial to keep an eye on this case, as it raises questions about security and trust in the decentralized finance space.
Keywords: Andean Medjedovic, decentralized finance, fraud scheme, KyberSwap, Indexed Finance.
Secondary Keywords: criminal indictment, digital tokens, blockchain network.
What is the case about?
A Canadian math genius is accused by the U.S. of running a $65 million scam related to cryptocurrency. Authorities claim he misled investors.
Who is the Canadian math prodigy?
The person involved is known for their intelligence in math, but the specific name hasn’t been widely shared yet due to ongoing investigations.
What are the main accusations?
The charges include fraud and conspiracy, claiming he tricked people into investing in a fake crypto scheme that promised big returns.
What could happen if he is found guilty?
If convicted, he could face serious legal penalties, including a long prison sentence and hefty fines, depending on the court’s decision.
How does this affect the crypto community?
This case raises concerns about scams in the cryptocurrency world, making investors more cautious and calling for safer regulations in the industry.