The US Department of Justice has charged two brothers for orchestrating a first-of-its-kind cryptocurrency heist. Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, allegedly exploited a vulnerability in the Ethereum blockchain and stole $25 million worth of cryptocurrency within 12 seconds.
Prosecutors believe the brothers, graduates of the Massachusetts Institute of Technology (MIT) with degrees in mathematics and computer science, utilized their advanced technical skills to manipulate pending transactions on the Ethereum network.
This manipulation, dubbed “the Exploit” by investigators, allowed them to divert cryptocurrency from unsuspecting traders.
The Department of Justice highlighted the complexity of the scheme, noting it took months of planning to execute in seconds. Deputy Attorney General Lisa Monaco praised the Internal Revenue Service (IRS) for their role in cracking the case, emphasizing the agency’s commitment to combating emerging financial crimes.
People are getting worried about the safety of blockchain, even with all the advanced technology we’ve got today. According to US Attorney Damian Williams, “The exploit makes us question if blockchain is secured as it claims.”
Authorities claim the two brothers refused to return the stolen funds after being contacted by Ethereum representatives and have already laundered the money to conceal their crime.
This case is the first of its kind as there have been no criminal charges filed for this specific type of cryptocurrency fraud before.
If found guilty, the Peraire-Bueno brothers could be looking at more than twenty years behind bars.