On February 3, 2025, the Department of Justice announced charges against Andean Medjedovic, a 22-year-old Canadian citizen, for allegedly defrauding investors of approximately $65 million by exploiting vulnerabilities in decentralized finance (DeFi) protocols. The charges are outlined in a five-count indictment unsealed in a federal court in New York. Medjedovic faces several charges, including wire fraud, unauthorized access to a protected computer, extortion, and money laundering.
Prosecutors allege that between 2021 and 2023, Medjedovic targeted the smart contracts used by two DeFi platforms, KyberSwap and Indexed Finance. These smart contracts are automated programs that handle financial transactions. Medjedovic is accused of executing complex trades designed to manipulate the system, causing false price calculations that allowed him to withdraw millions of dollars. The indictment also claims that he tried to hide the stolen funds through a series of complicated transactions, including using fake identities and digital tools that make it hard to trace money.
In November 2023, Medjedovic allegedly escalated his activities by attempting to extort control over the KyberSwap platform by offering to return some of the stolen assets in exchange for control of the platform’s operations.
It is important to note that an indictment is merely an allegation. Medjedovic is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, however, he could face up to 20 years in prison for each count of wire fraud, extortion, and money laundering, and up to 10 years for unauthorized computer access. Cases like this underscore the legal risks and complexities tied to rapidly evolving financial technologies.
At Chilivis Grubman, we have extensive experience defending clients against financial crime allegations. Our attorneys understand the unique challenges these cases present and are dedicated to protecting your rights. If you or your organization are facing similar charges, contact us to discuss how we can assist you in building a strong defense.