Two brothers, Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, have been charged with stealing $25 million in cryptocurrency in a mere 12 seconds. The US Department of Justice described the alleged heist as the first of its kind, highlighting its sophistication and the speed at which it was executed.
The Accusations
The brothers, both educated at the prestigious Massachusetts Institute of Technology (MIT), face charges of wire fraud and money laundering. According to prosecutors, the pair used their advanced knowledge of mathematics and computer science to exploit Ethereum’s transaction validation process. Deputy Attorney General Lisa Monaco stated, “The Peraire-Bueno brothers stole $25 million in Ethereum cryptocurrency through a technologically sophisticated, cutting-edge scheme they plotted for months and executed in seconds.”
The Scheme
Prosecutors allege that the brothers fraudulently gained access to pending private Ethereum transactions, then altered these transactions to steal their victims’ cryptocurrency. The method, referred to as “the Exploit” by the brothers, took only seconds to complete. When confronted by an Ethereum representative, the brothers reportedly refused to return the funds and instead attempted to launder and hide their stolen gains.
Legal Proceedings
The brothers were arrested on Tuesday in Boston and New York, respectively. They were charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. They are scheduled to appear before US magistrate judges in Massachusetts and New York. US Attorney Damian Williams commented, “The defendants’ scheme calls the very integrity of the blockchain into question. This alleged scheme was novel and has never before been charged.”
Implications
This case marks the first time such a sophisticated and novel form of cryptocurrency fraud has been subject to criminal charges. US Deputy Attorney General Lisa Monaco emphasized the importance of the case, stating, “As cryptocurrency markets continue to evolve, the Department will continue to root out fraud, support victims, and restore confidence to these markets.”
Conclusion
If convicted, Anton and James Peraire-Bueno each face a maximum of 20 years in prison for each count. This unprecedented case underscores the evolving nature of financial crimes in the digital age and the challenges law enforcement faces in combating such sophisticated schemes.
Source: https://cryptoticker.io/en/mit-brothers-arrested-for-25m-crypto-heist