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FBI Arrests 2 Brothers for Allegedly Attacking Ethereum and Stealing $25 Million Worth of Cryptocurrency: Tech: Tech Times
Two brothers have been arrested by the United States Department of Justice (DOJ) on charges related to an alleged attack on the Ethereum Blockchainresulting in the theft of $25 million cryptocurrency.
(Photo: Benjamin Nelan from Pixabay)
Two brothers face wire fraud and money laundering charges
The indictment charges Anton Peraire-Bueno, 24, of Boston, and James Pepaire-Bueno, 28, of New York, with conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering.
The alleged scheme masterminded by the defendants exploited the integrity of the Ethereum blockchain, allowing them to fraudulently acquire approximately $25 million in cryptocurrency in a quick 12-second exploit.
Anton and James were arrested in Boston and New York, respectively, and are scheduled 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.
US Attorney Damian Williams for the Southern District of New York called the project unprecedented, questioning the integrity of the blockchain. He pointed to the defendants’ use of their educational backgrounds in computer science and mathematics to manipulate Ethereum protocols, resulting in a quick 12-second heist.
Special Agent in Charge Thomas Fattorusso of the New York field office of IRS Criminal Investigation (IRS-CI) echoed these sentiments, praising the investigative efforts that ultimately unraveled the alleged intricate web of deception woven by the defendants.
The Justice Department said the brothers leveraged their specialized skills and knowledge, honed during their academic studies, to orchestrate the exploit. By tampering with the transaction validation processes inherent to the Ethereum blockchain, the brothers allegedly gained unauthorized access to pending private transactions, altering them to steal victims’ cryptocurrency.
The first of its kind
The project, supposedly the first of its kind, has been meticulously planned for several months. The brothers reportedly familiarized themselves with their victims’ trading behaviors, allowing them to execute the exploit with precision.
The Justice Department also alleges that he took extensive measures to hide his identity and the source of his earnings, creating shell companies and using various private addresses of cryptocurrency and foreign exchanges.
Following the alleged theft, the defendants engaged in a series of transactions aimed at concealing the source and ownership of the funds.
Anton Peraire-Bueno and James Pepaire-Bueno face serious consequences if convicted, including a maximum prison sentence of 20 years for each defendant. However, it is crucial to note that an indictment is an accusation and all defendants are presumed innocent until 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 and cutting-edge scheme that they planned for months and executed in seconds,” the Deputy Attorney General said Lisa Monaco we read in a press release.
“Unfortunately for the defendants, their alleged crimes were no match for Department of Justice prosecutors and IRS agents who exposed this first-of-its-kind wire fraud and money laundering scheme.”
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