Blockchain
American brothers arrested for stealing $25 million in cryptocurrencies in just 12 seconds
May 15, 2024
Image source, Getty Images
Two brothers who studied at one of the most prestigious universities in the US have been accused of stealing $25m (£20m) in cryptocurrency in 12 seconds.
Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, are charged with wire fraud and money laundering.
The US Department of Justice said the alleged robbery was the first of its kind.
Prosecutors also say the pair, reportedly studying at the Massachusetts Institute of Technology (MIT), performed it in April 2023.
“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,” said Deputy Attorney General Lisa Monaco.
He added that Internal Revenue Service (IRS) agents played a key role in uncovering “the first-of-its-kind wire fraud and money laundering scheme.”
The indictment alleges that the two used highly specialized skills learned at “one of the most prestigious universities in the world” to exploit Ethereum’s transaction validation process.
The brothers studied mathematics and computer science, according to the charges, and both attended MIT, according to news reports.
“The defendants’ scheme calls into question the very integrity of the blockchain,” U.S. Attorney Damian Williams said in a statement Wednesday, referring to the public ledger that records cryptocurrency payments.
The brothers allegedly robbed Ethereum traders by fraudulently gaining access to pending private transactions and then altering the transactions to obtain their victims’ cryptocurrency.
The process, which investigators say they dubbed “the exploit,” took just seconds to execute.
When confronted by an Ethereum representative, officials say the brothers refused to return the funds and took steps to launder and hide the stolen earnings.
Prosecutors point out that this is the first time such a “new” form of fraud has been the subject of criminal charges.
If convicted, they each face more than 20 years in prison.