In a striking development from the realm of decentralized finance (DeFi), U.S. prosecutors have charged 22-year-old Canadian Andean “Andy” Medjedovic with being the mastermind behind a staggering $65 million in cryptocurrency theft through two notable hacks: the 2021 Indexed Finance exploit and the 2023 KyberSwap hack.
A newly unsealed indictment filed in the Eastern District of New York (EDNY) outlines the charges against Medjedovic, revealing his alleged involvement in the notorious KyberSwap exploit, a detail not previously known to the public. Medjedovic has, however, openly claimed responsibility for the Indexed Finance hack during his teenage years, where he siphoned off a staggering $16 million.
For further insights, please read: After Stealing $16M, This Teen Hacker Seems Intent on Testing ‘Code is Law’ in the Courts.
Medjedovic’s case raises significant questions about legality and ethics in the DeFi landscape, especially as he and other hackers, such as Avraham “Avi” Eisenberg, have argued that their actions fall within a moral gray area, claiming the principle of “code is law.” Eisenberg’s 2022 exploitation of the Mango Markets for $110 million also landed him in trouble, culminating in a jury finding him guilty of fraud and market manipulation. He now awaits sentencing and could face a maximum of 20 years in prison.
Since December 2021, Medjedovic has been evading authorities following the issuance of an arrest warrant by a Canadian court. In interviews, he recounted the challenges of living as a fugitive, mentioning his travels through Europe, South America, and an unidentified island nation. Currently, he remains “at large” and is believed to be outside the United States, according to a spokesperson from the EDNY.
Despite his claims of transitioning to a whitehat hacker role, prosecutors allege Medjedovic meticulously planned the KyberSwap exploit for several months, even drafting a “POST-EXPLOITATION” plan. Reports suggest he sketched out reflections on his criminal activities, lamenting the risks associated with his lifestyle as a fugitive.
Medjedovic now faces serious legal repercussions, including one count of wire fraud, one count of unauthorized damage to a protected computer, one count of attempted Hobbs Act extortion, one count of money laundering conspiracy, and one count of money laundering. If convicted on all charges, he could face a maximum penalty of up to 90 years in prison.
