Federal prosecutors accused the man of allegations by which he stole $ 65 million cryptocurrency, using gaps in two decentralized financial platforms, after which washing influence and an try and force fraudsters.
Program, allegedly in indictment Unexpected on Monday, took place in 2021 and 2023 in relation to the Defi Kyberswap and indexed funds. Both platforms provide automated services often known as “liquidity pools” that allow users to transfer cryptocurrencies from one to a different. The pools are financed from the user -controlled cryptocurrency and are managed by intelligent contracts enforced by platform software.
“Dangerous mathematical efficiency”
Prosecutors said that Andean Medjovic, currently 22 years old, has used gaps in Kyberswap and indexed intelligent financial contracts, using “manipulative trade practices”. In November 2023, he apparently used tons of of hundreds of thousands of dollars of borrowed cryptocurrency to cause artificial prices in Kyberswap liquidity pools. According to prosecutors, he then calculated precise mixtures of transactions that will cause the Kyberswap intelligent contract system – often known as AMM or automated market producers – to “fault”, as he wrote later.
The program allegedly allowed Mediovic to steal around $ 48.8 million with 77 pools of liquidity Kyberswap on six public blocks. Apparently, he also tried to force developers of the Kyberswap protocol, investors and members of a decentralized autonomous organization (DAO). Prosecutors said that the defendant offered to return 50 percent of the stolen cryptocurrency in exchange for control over the Kyberswap protocol.
Prosecutors said that Medjovic also used the “bridge” protocols to transfer cryptocurrency from one blockchain to a different using a “mixer” cryptocurrency by the “mixer” cryptocurrency, designed to cover the source of digital assets. After one protocol of the bridge, he froze several of his transactions, Medjovic agreed to pay over $ 80,000 to someone who, in accordance with him, had control over the bridge to avoid the restrictions and release about $ 500,000 in the stolen cryptocurrency. This transaction, as is soon explained, ultimately led to its dissolution.