Canadian Man Charged in $65M Cryptocurrency Hacking Schemes

Source: United States Department of Justice Criminal Division

Note: View the indictment here.

A five-count criminal indictment was unsealed today in federal court in New York charging a Canadian man with exploiting vulnerabilities in two decentralized finance protocols to fraudulently obtain about $65 million from the protocols’ investors.

According to court documents, from 2021 to 2023, Andean Medjedovic, 22, allegedly exploited vulnerabilities in the automated smart contracts used by the KyberSwap and Indexed Finance decentralized finance protocols. Medjedovic borrowed hundreds of millions of dollars in digital tokens, which he used to engage in deceptive trading that he knew would cause the protocols’ smart contracts to falsely calculate key variables. Through his deceptive trades, Medjedovic was able to, and ultimately did, withdraw millions of dollars of investor funds from the protocols at artificial prices, rendering the victims’ investments essentially worthless.

Medjedovic also allegedly laundered the proceeds of his fraudulent schemes through a series of transactions designed to conceal the source and ownership of the funds, including through swap transactions, “bridging transactions,” and the use of a digital assets “mixer.” With others, Medjedovic also allegedly schemed to open accounts with digital assets exchanges using false and borrowed identifying information to conceal the source and true ownership of the proceeds. In around November 2023, after executing the KyberSwap exploit, Medjedovic also allegedly attempted to extort the victims of the KyberSwap exploit through a sham settlement proposal, in which he demanded complete control of the KyberSwap protocol and the decentralized autonomous organization that oversaw the KyberSwap protocol in exchange for returning 50 percent of the digital assets that he fraudulently obtained through his scheme.

Medjedovic is charged with one count of wire fraud, one count of unauthorized damage to a protected computer, one count of attempted Hobbs Act extortion, one count of money laundering conspiracy, and one count of money laundering. If convicted, he faces a maximum penalty of 10 years in prison on the unauthorized damage to a protected computer count and 20 years in prison on each of the other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney John J. Durham for the Eastern District of New York, Chief Guy Ficco of IRS Criminal Investigation (IRS-CI), Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York, and Assistant Director in Charge James E. Dennehy of the FBI New York Field Office made the announcement.

IRS-CI, HSI, and the FBI New York Field Office are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection’s New York Field Office and the Justice Department’s Office of International Affairs. The Justice Department also thanks the Netherlands’ Public Prosecution Service and Cybercrime Unit — the Hague of the Dutch National Police for their significant assistance with the investigation.

Trial Attorney Tian Huang of the Criminal Division’s Fraud Section, who is a member of the National Cryptocurrency Enforcement Team (NCET), and Assistant U.S. Attorneys Nicholas Axelrod and Andrew Reich for the Eastern District of New York are prosecuting the case. SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Justice Department Announces Formation of Task Force to Combat Anti-Semitism

Source: United States Department of Justice Criminal Division

Pursuant to President Trump’s Executive Order on Additional Measures to Combat Anti-Semitism, the Justice Department announced today the formation of a multi-agency Task Force to Combat Anti-Semitism. The Task Force’s first priority will be to root out anti-Semitic harassment in schools and on college campuses.

In addition to the Department of Justice, the Task Force will include representatives from the U.S. Department of Education, U.S. Department of Health and Human Services, and other agencies as it develops. The Task Force will be coordinated through the Department’s Civil Rights Division.  

“Anti-Semitism in any environment is repugnant to this Nation’s ideals,” said Senior Counsel to the Assistant Attorney General for Civil Rights Leo Terrell, who will be heading the Task Force. “The Department takes seriously our responsibility to eradicate this hatred wherever it is found. The Task Force to Combat Anti-Semitism is the first step in giving life to President Trump’s renewed commitment to ending anti-Semitism in our schools.”

If you have been discriminated against, you can file a complaint with the Civil Rights Division, at Contact the Civil Rights Division | Department of Justice (https://civilrights.justice.gov). President Trump’s Executive Order can be found here: Additional Measures to Combat Anti-Semitism – The White House.

Defense News: USS Mount Whitney Holds Change of Command

Source: United States Navy

Capt. Colin Price relieved Capt. Matthew Kiser and assumed duties as the ship’s commanding officer in a ceremony aboard the ship. Vice Adm. J. T. Anderson, commander of U.S. Sixth Fleet, and Striking and Support Forces NATO, presided over the ceremony and delivered remarks about Kiser’s time aboard the Mount Whitney.

“One unique aspect of serving as the commanding officer of the U.S. Sixth Fleet flagship is how the ship and crew represent the U.S. Navy in Europe and Africa, participating in many exercises, key leader engagements, and strengthening our relationships with allies and partners,” Anderson said. “Capt. Kiser built a great team that accomplished all we could ask of them.”

Kiser, a graduate of Texas A&M University and a native of Bedford, Texas assumed command in April 2023. During his tour, he led the flagship of U.S. Sixth Fleet and Naval Striking and Support Forces NATO while participating in several exercises and activities, including Baltic Operations (BALTOPS) 2023 and 2024, Large Scale Exercise (LSE) 23, as well as support to Joint Task Force 406 as it conducted multi-national maritime crisis response and contingency planning.

During his speech that he gave in the change of command ceremony, Kiser credited the success of his tour to the hard work that Mount Whitney Sailors exhibited.

“I couldn’t be prouder of our Team 20 Sailors and Civil Service Mariners, and their achievements over the last two years,” Kiser said. “It has been a privilege as commanding officer to witness the hard work and dedication in supporting command and control exercises and activities with our partner branches in the U.S. armed forces and our allies in NATO.

“My time is highlighted by the efforts of Team 20 that went into demonstrating our new capability to support two separate staffs embarked simultaneously while each were engaged with their own mission – on the only ship that can do this in the world. I am eager to watch the ship’s continued progress over the next several months as the Mount Whitney gets back out to sea.”

Price is a graduate of the United States Naval Academy with a Bachelor of Science in systems engineering. He was commissioned in 2001, and designated a Naval Aviator in January 2004.

As a junior officer he was assigned to Strike Fighter Squadron (VFA) 137 in Lemoore, California, with deployments embarked aboard USS Abraham Lincoln (CVN 72), and as a global war on terror support assignment as an intelligence, surveillance and reconnaissance operator in support of Operation Enduring Freedom in Afghanistan.

In August 2005, he participated in Joint Task Force Katrina providing humanitarian assistance to the citizens of New Orleans. In 2015, after completion of Navy Nuclear Power training he was assigned as the 25th executive officer of the USS Dwight D. Eisenhower (CVN 69).

“I want to express my sincere congratulations to Capt. Kiser for a job well done and for the great service he did for our nation and Navy,” Price said. “It is an honor and pleasure to assume the watch from you. I promise to take exemplary care of your Sailors and ship.”

Mount Whitney, forward deployed to Gaeta, Italy operates with a combined crew of U.S. Sailors and Military Sealift Command civil service mariners in the U.S. 6th Fleet area of operations in support of U.S. national security interests in Europe and Africa.

U.S. 6th Fleet, headquartered in Naples, Italy, conducts the full spectrum of joint and naval operations, often in concert with allied, and interagency partners, in order to advance U.S. national interests and security and stability in Europe and Africa. USS Mount Whitney (LCC 20) is the U.S. 6th Fleet flagship, homeported in Gaeta, and operates with a combined crew of U.S. Sailors and Military Sealift Command civil service mariners.

Defense News: U.S. Sixth Fleet hosts MAKO Challenge 2025

Source: United States Navy

The MAKO series is designed to provide Reserve Sailors with hands-on experience in a Maritime Operations Center (MOC) overseeing forces at the Operational Level of War (OLW).  

“U.S. Sixth Fleet is hosting this year’s MAKO Challenge to provide Reserve Sailors with the experience and skills necessary to establish and operate a Maritime Operations Center in the event of a crisis or large-scale conflict,” said Rear Adm. Jason ‘PADI’ Naidyhorski, vice commander, U.S. Sixth Fleet. “Given the threats we face in the Sixth Fleet area of operations, our Reserve Sailors have to be ready on Day One to step into scenarios like this at a moment’s notice.” 

Reserve Sailors from U.S. Naval Forces Europe and Africa (NAVEUR-NAVAF), Fleet Forces Command (USFF), U.S. Second Fleet, U.S. Fourth Fleet, U.S. Fifth Fleet, and U.S. Tenth Fleet are also participating in the exercise. 

The MAKO series of exercises is conducted annually to provide Reserve Sailors with realistic training in MOC procedures, preparing them to support their active-duty counterparts in both exercises and real-world contingencies.  

Over the course of the four-day exercise, Sailors enhance warfighting readiness through hands-on training in MOC watchstanding, briefing commanders, and establishing operational planning teams and cross-functional planning teams in support of the Fleet Commander’s Decision Cycle. 

Both the Chief of Naval Operations’ 2024 Warfighting Instructions and Chief of Navy Reserve’s 2024 Strategic Guidance prioritize readiness for the possibility of large scale conflict, in which the MOC construct would play a critical role in operations.  The MAKO series of exercises has been tailored to prepare for Reserve Sailors this contingency in accordance with this guidance. 

Commander, U.S. Sixth Fleet, headquartered in Naples, Italy, conducts the full spectrum of joint and naval operations, often in coordination with Allied and interagency partners, to advance U.S. national interests and promote security and stability in Europe and Africa. 

Defense News: Navy Expanded Access to Childcare in 2024, Continued Growth Plans for 2025

Source: United States Navy

WASHINGTON — Since the start of FY23, the program has reduced the waitlist for child development centers (CDCs) and school age care (SAC) by 50%. The number of children with unmet childcare needs dropped from approximately 5,000 to about 2,500 by October 2024.

“The Navy is committed to improving quality of service and a significant part of that is child care,” said Vice Adm. Scott Gray, commander of Navy Installations Command, which oversees Navy CYP. “Readiness suffers when Sailors and their families lack dependable, high-quality child care. That’s why we invested an additional $51.7 million to grow our childcare services, including increasing staff salaries and benefits as well as boosting subsidies for community and family childcare spaces.”

IMPROVING QUALITY OF CARE

In FY 2024, Navy CYP introduced several initiatives to improve the quality of care. These included updating staffing models at CDCs and adding management support to address the complex needs of children in care. Additional classroom staff have been authorized to assist with managing complex behaviors, particularly in preschool classrooms.

Management training has been enhanced with in-person sessions focused on prevention strategies and protective factors to reduce incidents within CYP settings. Additionally, a new rest period policy and in-service training days have been implemented to support the health, wellness, and professional development of CYP staff.

To improve reporting and safety, clear incident reporting requirements have been established, ensuring timely documentation and enabling trend analysis. These measures reflect CYP’s commitment to creating safe, supportive environments for children while providing staff with the necessary resources to succeed.

ADDRESSING STAFFING CHALLENGES

Consistent with municipal and commercial childcare programs, the Navy faces ongoing challenges in attracting qualified caregivers. A shortage of classroom staff has forced CDCs to operate below capacity to maintain the required staff-to-child ratios. 

To address this, Navy CYP has focused on expanding capacity at installation CDCs by enhancing its workforce. Strategies include salary increases, recruitment and retention incentives, strategic marketing of CYP positions, and providing professional development opportunities. Additionally, CYP direct care staff receive childcare discounts of 100% for their first child and 20% for additional children, while management and support staff enjoy a 50% discount for their first child and 20% for others.

These efforts have had a measurable impact. As of September 2022, 75% of childcare positions were filled, and enrollment was at 76% capacity. By October 2024, staffing had increased to 88%, allowing the program to operate at 85% capacity.

FOCUS ON STAFF RETENTION AND ORGANIZATIONAL CULTURE

Navy CYP has also launched initiatives to prioritize staff retention. In 2025, the program will introduce a new initiative called CARES (Culture, Accountability, Respect, Engagement, and Safety). This program aligns with CNIC’s core values and focuses on enhancing communication, supporting employee wellness, and addressing workplace concerns. By fostering a positive organizational culture, CARES aims to attract, develop, and retain high-quality staff.

STREAMLINING OPERATIONS

Navy CYP is also working to enhance efficiencies for families and staff. In FY25, the program will roll out a new Child and Youth Management System to streamline operations and improve the customer experience. This system will include a user-friendly parent portal to simplify paperwork and improve communication between parents and staff.

STRUCTURAL EXPANSION AND FACILITY UPGRADES

In addition to staffing and operational improvements, Navy CYP is expanding its physical infrastructure. Ongoing construction projects at CDCs on Naval Base Kitsap, Naval Base Point Loma, Naval Support Activity Hampton Roads, and Joint Expeditionary Base Little Creek/Fort Story will add 978 childcare spaces and upgrade existing facilities. Over the next five years, 12 more CDC projects are scheduled, which will add approximately 2,000 additional spaces to the Navy’s CDC capacity.

The Navy is also investing in sustainment, restoration, and modernization (SRM) to improve or maintain the quality of its existing CDCs.

REPURPOSING EXISTING SPACES

To further expand capacity, the Navy has been converting underutilized community spaces into childcare facilities. Unused warehouses, chapels, community centers, and MWR spaces are being repurposed to meet the demand for child care. Recently, spaces at Commander, Fleet Activities Yokosuka and Naval Air Station Patuxent River were converted into School Age Care facilities.

EXPANDING MILITARY CHILDCARE IN YOUR NEIGHRBORHOOD

The Navy has expanded its Military Child Care in Your Neighborhood (MCCYN) program, which provides community-based fee assistance to active duty families. As of October 2024, 8,623 children were enrolled in MCCYN, up from 4,100 at the start of FY23.

Additionally, the Navy is partnering with commercial childcare providers to secure dedicated spaces exclusively for military families. These spaces are integrated into the installation’s CDC inventory and managed through the Department of Defense’s request for care platform, militarychildcare.com.

LOOKING AHEAD

“Navy CYP has made significant progress in increasing enrollment across its programs,” said Maryann Coutino, Director of Navy CYP. “However, we still have about 2,500 children on our waitlist with unmet childcare needs. Addressing this challenge requires a comprehensive strategy that includes staffing improvements, new facilities, and leveraging community resources. We are committed to steadily increasing childcare capacity to better support our service members and their families.”

Commander, Navy Installations Command is responsible for worldwide U.S. Navy Shore installation management, designing and developing integrated solutions for sustainment and development of Navy shore infrastructure as well as quality of life programs. CNIC oversees 10 Navy regions, 70 installations, and more than 43,000 employees who sustain the fleet, enable the fighter, and support the family.

Learn more by visiting CNIC’s website at https://www.cnic.navy.mil/ or following CNIC on social media: Facebook, Facebook.com/NavyInstallations; X, @cnichq; and Instagram, @cnichq.