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Federal prosecutors in Brooklyn have charged Canadian graduate student Andean Medjedovich with stealing $65 million in cryptocurrency from the KyberSwap and Indexed Finance platforms.
The prosecution alleges that Medjedovich used his mathematical abilities to cause the platforms to malfunction, allowing him to withdraw funds.
According to The New York Times , he also manipulated the cryptocurrency rate by exploiting vulnerabilities in the code that determines their value. According to the publication, his fraudulent activity began in 2021, when he was still a graduate student at the University of Waterloo. However, his actions soon attracted the attention of law enforcement agencies, and he went into hiding.
Medjedovich himself denies involvement in the crimes, but in an interview with Bloomberg, he admitted that he used smart contract vulnerabilities to influence cryptocurrency rates.
Acting US Attorney for Brooklyn John Durham said criminals who abuse new technologies will be held accountable, regardless of their location. Medjedovic currently remains at large, despite not having a lawyer.
According to investigators, his attacks on KyberSwap began as early as November 2023. Moreover, he allegedly offered to return half of the stolen funds in exchange for certain leverage over the platform.
[td]"Hackers may seem like glamorous figures in pop culture. Some admire their skills. But ultimately, they are stealing other people's money, which means they are breaking the law," said James Dennehy, assistant director in charge of the FBI's New York office.[/td]
The prosecution alleges that Medjedovich used his mathematical abilities to cause the platforms to malfunction, allowing him to withdraw funds.
According to The New York Times , he also manipulated the cryptocurrency rate by exploiting vulnerabilities in the code that determines their value. According to the publication, his fraudulent activity began in 2021, when he was still a graduate student at the University of Waterloo. However, his actions soon attracted the attention of law enforcement agencies, and he went into hiding.
Medjedovich himself denies involvement in the crimes, but in an interview with Bloomberg, he admitted that he used smart contract vulnerabilities to influence cryptocurrency rates.
Acting US Attorney for Brooklyn John Durham said criminals who abuse new technologies will be held accountable, regardless of their location. Medjedovic currently remains at large, despite not having a lawyer.
According to investigators, his attacks on KyberSwap began as early as November 2023. Moreover, he allegedly offered to return half of the stolen funds in exchange for certain leverage over the platform.