The federal government on Wednesday indicted two brothers in Massachusetts on fraud-related charges for allegedly attacking the Ethereum blockchain and stealing $25 million in cryptocurrency in just about 12 seconds, according to the Department of Justice (DOJ).
Anton Peraire-Bueno, 24, of Boston, and James Peraire-Bueno, 28, of New York, were charged with “wire fraud, wire fraud, and conspiracy to commit money laundering.” Department of Justice press release said. Prosecutors allege in a press release that the brothers spent months mapping out an unprecedented plan that helped them exploit the very integrity of the Ethereum blockchain and steal staggering amounts of money in a short period of time. did.
Two brothers in computer science and mathematics who graduated from “one of the most prestigious universities in the world” used their skills to breach the Ethereum protocol, which millions of crypto users rely on. and carried out the robbery quickly, said U.S. Attorney Damian Williams. The District of New York claimed.
Prosecutors argued that by compromising blockchain processes and protocols, the brothers gained unauthorized access and tampered with the victims’ transactions. The suspects are accused of refusing requests for the return of stolen virtual currency. Rather, they planned to launder the amounts through a series of transactions that involved “setting up shell companies, setting up shell companies, and using multiple private cryptocurrency addresses and foreign cryptocurrency exchanges.” The charges continued. (Related: Convicted fraudster Sam Bankman Freed was the ‘worst’ cross-examination witness in history, lawyer says)
U.S. Attorney Damian Williams announces the arrest of two people accused of attacking the Ethereum blockchain and stealing $25 million in cryptocurrency. pic.twitter.com/UwGYhJLEdE
— U.S. Attorney SDNY (@SDNYnews) May 15, 2024
“This alleged scheme is novel and has never been prosecuted before,” Williams said.
Williams declined to reveal the names of the universities the two attended. Nevertheless, CBS News reported The two reportedly attended the Massachusetts Institute of Technology (MIT). There, my brother earned a bachelor’s degree in mathematics, computer science, and aerospace engineering in June 2019, and a master’s degree in aeronautics and astronautics in June 2021. He said his brother graduated three months ago with a bachelor’s degree in computer science and engineering. Report.
If convicted, each suspect could receive up to 20 years in prison on each charge, for a total of up to 60 years, the Justice Department said.
“As virtual currency markets continue to evolve, the Department will continue to root out fraud, assist victims, and restore trust in these markets,” said Deputy Attorney General Lisa Monaco. The press release said in part.
