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$25M Ethereum Heist: Brothers Charged for 12-Second Blockchain Hack
Two brothers, Anton Peraire-Bueno and James Peraire-Bueno, were arrested yesterday in Boston and New York, respectively, for allegedly hacking the Ethereum blockchain and stealing $25 million in cryptocurrency in just 12 seconds.
According to the indictment, the brothers, who studied computer science and math at a prestigious university, used their specialized skills to tamper with and manipulate the protocols relied upon by millions of Ethereum users worldwide. This alleged scheme was novel and has never before been charged in the United States.
“Today, my Office indicted two brothers—Anton Peraire-Bueno and James Peraire-Bueno—for conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, all stemming from their alleged scheme to exploit the Ethereum blockchain and to obtain about $25 million worth of cryptocurrency from it,” said U.S. Attorney Damian Williams.
Deputy Attorney General Lisa Monaco added, “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.”
IRS-CI Special Agent in Charge Thomas Fattorusso said, “In this case, IRS-CI New York’s Cyber Unit simply followed the money. Regardless of the complexity of the case, we continue to lead the effort in financial criminal investigations with cutting-edge technology and good-ole-fashioned investigative work, on and off the blockchain.”
The brothers will be presented before U.S. Magistrate Judges Paul G. Levenson for the District of Massachusetts and Valerie Figueredo for the Southern District of New York this afternoon.
The indictment charges the brothers with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of New York, with assistance from the IRS-CI.
The alleged scheme, known as the “Exploit,” involved the brothers using their expertise in cryptocurrency trading to gain access to pending transactions and alter the movement of the electronic currency. The heist took only 12 seconds to complete.
The case highlights the growing threat of blockchain hacking and the need for law enforcement to stay ahead of emerging technologies. As cryptocurrency markets continue to evolve, the Department of Justice will continue to root out fraud, support victims, and restore confidence to these markets.
The Peraire-Bueno brothers are expected to face severe penalties if convicted. The indictment serves as a warning to other would-be hackers that the Department of Justice will pursue them relentlessly, no matter how sophisticated their schemes may be.
Grimy Times will continue to provide updates on this developing story as more information becomes available.
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Cybercrime
- Source: Official Source ↗
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