The Crypto Fugitive: How a Math Prodigy Became DeFi’s Most Wanted

A dramatic chapter in the world of decentralized finance (DeFi) is unfolding as US prosecutors have charged 22-year-old Andean Medjedovic in connection with a series of exploits totaling $65 million. The Canadian math prodigy, long suspected of orchestrating attacks on Indexed Finance and KyberSwap, now faces multiple charges, including fraud, money laundering, and extortion. But Medjedovic insists he was merely taking advantage of flawed protocols—a defense that has failed before in US courts.

The Indexed Finance Exploit: A ‘Legal’ Hack?

In October 2021, Indexed Finance fell victim to a sophisticated exploit, losing $16 million in crypto. Medjedovic, according to court papers, later admitted to the attack, arguing that he had simply used the protocol’s code against itself—an interpretation of DeFi’s “code-is-law” ethos that has sparked fierce debate.

His argument echoes that of Avraham Eisenberg, who manipulated Solana’s Mango Markets using a similar strategy. But in Eisenberg’s case, a Manhattan jury wasn’t convinced, convicting him of fraud. This precedent doesn’t bode well for Medjedovic as he faces prosecution.

The KyberSwap Connection: Another $48 Million Vanishes

Medjedovic’s name resurfaced in November 2023 when KyberSwap, a major decentralized exchange aggregator, was drained of $48 million. Investigators traced $2 million from the exploit to a wallet linked to Medjedovic. The hacker behind the attack even demanded control of Kyber in exchange for returning some of the funds—a bold move that prosecutors allege was Medjedovic’s doing.

Adding another layer of intrigue, an indictment claims Medjedovic meticulously documented his money laundering strategies, even noting plans to purchase a secure laptop for “storing crypto + hacks.” In a moment of self-awareness, he reportedly messaged a contact: “I did something very cool but accidentally doxxed myself in the process. I may be on the run forever now.”

The DeFi Debate: Criminal or Exploiter?

BitGalactic’s take on this case is clear: while DeFi has long been a battleground between ethical hackers and outright criminals, Medjedovic’s actions appear to blur the lines. The ethical hacking narrative he tried to push doesn’t hold up when paired with extortion and money laundering allegations.

Moreover, Medjedovic’s saga highlights a persistent problem in the crypto space—protocol vulnerabilities remain ripe for exploitation, and law enforcement is still catching up. His case raises pressing questions: Should DeFi protocols be held accountable for their own weaknesses? Or should exploiters like Medjedovic be treated as criminals, regardless of their justifications?

The Endgame: A Fugitive No More?

With charges now filed against him, Medjedovic’s days as a fugitive may be numbered. Yet, his capture would do little to bring restitution to Indexed Finance victims—most of the stolen funds have already been re-stolen by unknown hackers.

For now, the Medjedovic saga remains an unfolding thriller in the wild west of DeFi. But one thing is certain: as long as blockchain vulnerabilities exist, so too will those eager to exploit them.