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Cryptocurrency thieves charged in $25 million Ethereum heist
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The US Department of Justice has arrested two brothers for attacking the Ethereum blockchain and stealing $25 million worth of cryptocurrency within 12 seconds, an indictment unsealed Wednesday said.
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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, has the agency said.
The Department of Justice alleged that the two committed a “first-of-its-kind manipulation” of the Ethereum blockchain. By doing so, they were able to redirect the pending transactions to ultimately steal $25 million in cryptocurrency.
“As we allege, the defendants’ scheme calls into question the very integrity of the blockchain,” said U.S. Attorney Damian Williams for the Southern District of New York.
The Justice Department said that because the Peraire-Bueno brothers studied computer science and mathematics at “one of the most prestigious universities in the world,” their education could have helped them carry out the scheme.
If convicted, the Peraire-Bueno brothers each face a maximum of 20 years in prison on each of the three counts they are accused of, the Justice Department said.
The charges against the brothers also come as there is debate over whether the U.S. Securities and Exchange Commission (SEC) will move to approve an Ethereum exchange-traded fund (ETF). The sentence, scheduled for within this yearit would allow investors to gain exposure to Ether tokens without directly owning the cryptocurrency.