Manhattan Prosecutors Charge Hacker in Major Cryptocurrency Theft Case

According to court filings, Andean Medjedovic is accused of executing sophisticated cyberattacks targeting the KyberSwap and Indexed Finance decentralized finance (DeFi) protocols, two major cryptocurrency platforms. Prosecutors describe Medjedovic as an expert crypto hacker who exploited flaws in price-setting algorithms, allowing him to siphon $49 million from KyberSwap and an additional $16 million from Indexed Finance.

Authorities say Medjedovic’s scheme relied on massive token borrowing to artificially manipulate market prices. By strategically leveraging these borrowed assets, he allegedly manipulated pricing algorithms, enabling him to execute trades at unfairly advantageous rates. His actions resulted in significant financial losses for investors and reignited concerns about security weaknesses in DeFi platforms.

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John J. Durham, United States Attorney for the Eastern District of New York, issued a strong warning: “Criminals like the defendant who take advantage of new technologies to harm investors will be held accountable no matter where in the world they carry out their schemes.” His statement underscores law enforcement’s determination to combat cybercrime, which continues to threaten investors and the stability of digital markets.

This case is far from an isolated incident in the crypto industry. Similar attacks are happening worldwide. In one recent case, hackers exploited a browser vulnerability to drain funds from crypto wallets on adult websites. Meanwhile, security failures at major platforms remain a pressing concern—Coinbase’s negligence recently resulted in $300 million in user losses, further fueling calls for stricter security measures.

Medjedovic, who has been on the run since 2021, remains at large. He was previously charged in Canada for a similar scheme. In past interviews, he defended his actions by claiming he was merely taking advantage of a pricing loophole in smart contracts. However, this argument has done little to sway law enforcement or restore public trust.

The impact of this case extends far beyond the $65 million stolen. High-tech exploits like these undermine investor confidence in crypto markets, prompting both developers and regulators to tighten cybersecurity measures. As digital currencies play an increasingly significant role in the global economy, large-scale incidents like this serve as critical wake-up calls, emphasizing the need for stronger digital asset protections and enhanced international cooperation in fighting cybercrime.

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