Blockchain
$25 Million Stolen in 12 Seconds: MIT Graduates Pull Off Crypto Heist in Ethereum Blockchain Scheme
Manhattan federal prosecutors arrested two brothers studying at the Massachusetts Institute of Technology on Wednesday, accusing them of carrying out a cutting-edge plan to steal $25 million worth of cryptocurrencies and exploit the integrity of the Ethereum blockchain. New York Post.
According to the report, federal prosecutors identified the defendants as Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28. They said this was the first time a fraud like this had been the subject of U.S. criminal charges.
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Claiming that the Peraire-Bueno brothers carried out their elaborate robbery in April 2023, federal officials say they stole $25 million from traders in just 12 seconds after fraudulently gaining access to pending transactions and then altering the cryptocurrency movement.
“As we argue, the defendants’ plan calls into question the very integrity of the blockchain,” New York Post quoted U.S. Attorney Damian Williams.
Authorities charged the Peraire-Bueno brothers with conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering.
The report also mentioned that Anton was arrested in Boston, while James was held in New York.
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The Peraire-Bueno brothers attended MIT in Cambridge, Massachusetts, where they studied computer science and mathematics. Prosecutors say they used their skills and education to commit fraud.
Prosecutors said they both plotted for months to manipulate and tamper with the protocols used to validate transactions for inclusion on the Ethereum blockchain.
Additionally, prosecutors said the Peraire-Bueno brothers exploited a vulnerability in the code of software called MEV-boost, used by most of the Ethereum network’s “validators.” These validators check whether new transactions are valid before they are added to the blockchain.
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After carrying out the robbery, the Peraire-Bueno brothers refused requests for the return of the funds. Instead, they took steps to launder and hide the stolen cryptocurrency, prosecutors added.
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