Two brothers have been apprehended by the U.S. Department of Justice (DOJ) on charges related to an alleged attack on the Ethereum blockchain, resulting in the theft of $25 million worth of cryptocurrency.
Two Brothers Faces Charges of Wire Fraud, Money Laundering
The indictment accuses Anton Peraire-Bueno, 24, of Boston, and James Pepaire-Bueno, 28, of New York, of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering.
The alleged scheme devised by the defendants exploited the integrity of the Ethereum blockchain, allowing them to fraudulently acquire around $25 million worth of cryptocurrency in a swift 12-second exploit.
Anton and James were arrested in Boston and New York, respectively, and are slated to appear before U.S. Magistrate Judge Paul G. Levenson for the District of Massachusetts and U.S. Magistrate Judge Valerie Figueredo for the Southern District of New York.
U.S. Attorney Damian Williams for the Southern District of New York characterized the scheme as unprecedented, casting doubt on the blockchain's integrity. He emphasized the defendants' use of their educational backgrounds in computer science and mathematics to manipulate Ethereum's protocols, resulting in a rapid 12-second heist.
Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office echoed these sentiments, praising the investigative efforts that ultimately unraveled the alleged intricate web of deception woven by the defendants.
The DOJ said that the brothers leveraged their specialized skills and knowledge, honed during their academic pursuits, to orchestrate the exploit. By tampering with the transaction validation processes inherent to the Ethereum blockchain, the brothers reportedly gained unauthorized access to pending private transactions, altering them to siphon off victims' cryptocurrency.
Read Also : CryptoWatch: Robinhood's Wells Notice from SEC, FTX Repay Debts, Crypto Scammer Returns Stolen WBTC
The First of its Kind
The scheme, purportedly the first of its kind, was meticulously planned over several months. The brothers reportedly familiarized themselves with the trading behaviors of their victims, enabling them to execute the exploit with precision.
The DOJ further alleges that they took extensive measures to hide their identities and the origins of their gains, establishing shell companies and utilizing various private cryptocurrency addresses and foreign exchanges.
Following the alleged theft, the defendants engaged in a series of transactions designed to hide the source and ownership of the funds.
Anton Peraire-Bueno and James Pepaire-Bueno face severe consequences if convicted, including a maximum prison term of 20 years for each count. However, it is crucial to note that an indictment represents an allegation, and all defendants are presumed innocent until they are proven guilty in a court of law.
"As alleged in today's indictment, 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," Deputy Attorney General Lisa Monaco said in a press release statement.
"Unfortunately for the defendants, their alleged crimes were no match for Department of Justice prosecutors and IRS agents, who unraveled this first-of-its kind wire fraud and money laundering scheme."
