Two brothers, Anton Peraire-Bueno (24) and James Peraire-Bueno (28), both Massachusetts Institute of Technology (MIT) graduates, were arrested on Wednesday for orchestrating an innovative scheme to exploit the integrity of the Ethereum blockchain and pilfer $25 million in cryptocurrency.
Federal prosecutors in Manhattan described the scheme as “novel,” marking the first criminal charges in the U.S. related to such a fraud.
The brothers executed their sophisticated heist in April 2023, swindling $25 million from traders within a mere 12 seconds.
Their modus operandi involved gaining unauthorized access to pending transactions and manipulating the movement of cryptocurrency.
U.S. Attorney Damian Williams highlighted the seriousness of the case, stating, “As we allege, the defendants’ scheme calls the very integrity of the blockchain into question.”
The indictment against them includes charges of wire fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
Anton Peraire-Bueno was arrested in Boston, while James Peraire-Bueno was apprehended in New York.
The brothers, both with backgrounds in computer science and math from MIT, allegedly utilized their education and skills to carry out the fraud.
The indictment outlined how they plotted for months to manipulate the protocols governing transaction validation on the Ethereum blockchain.
Specifically, they exploited a vulnerability in MEV-boost software, commonly used by Ethereum network validators.
After executing the heist, the brothers refused requests to return the stolen funds and proceeded to launder and conceal the cryptocurrency.
Their legal representatives have not yet responded to requests for comment.
Source-CNN
