"Math Grad Mastermind Behind $65M Crypto Heist"

Canadian national Andean Medjedovic has been arrested and charged with a series of cybercrimes involving the theft of $65 million in cryptocurrency from two decentralized finance (DeFi) protocols, KyberSwap and Indexed Finance. The 32-year-old, who graduated from the University of Waterloo with a mathematics degree, is accused of exploiting vulnerabilities in the smart contracts of these platforms to manipulate prices and drain funds.

The indictment, unsealed in a federal court in Brooklyn, New York, details Medjedovic's alleged scheme. He is said to have taken advantage of coding flaws in the smart contracts that govern the liquidity pools on KyberSwap, allowing him to secure millions of dollars in illegal earnings from investors. The stolen funds, totaling $48.8 million, were distributed across 77 KyberSwap liquidity pools on six different blockchains.

Medjedovic's crimes did not stop at KyberSwap. In 2021, he targeted Indexed Finance, using price manipulation tactics to steal $16.5 million from the platform. He attempted to launder the stolen funds through the use of fake user accounts and cryptocurrency transaction platforms.

In addition to the thefts, Medjedovic is accused of attempting to extort the developers and members of KyberSwap's decentralized community. He demanded control of the protocol in exchange for returning 50% of the stolen funds. To disguise the stolen money, Medjedovic employed bridge protocols for blockchain transfers and mixers to conceal the transaction origins.

Medjedovic's alleged crimes highlight the growing threat of cybercriminal activities within the expanding cryptocurrency market. As DeFi protocols continue to gain popularity, it is crucial for developers to prioritize security and for investors to remain vigilant. The case also underscores the importance of international cooperation in apprehending and prosecuting cybercriminals.