Two American brothers who attended the Massachusetts Institute of Technology (MIT) have been arrested for allegedly taking part in a quick multimillion-dollar crypto heist.
According to a new press release from the US Department of Justice (DOJ), the brothers – Anton Peraire-Bueno, 24, of Boston, and James Pepaire-Bueno, 28, of New York – have been arrested on three charges in connection with the alleged theft of $25 million from the Ethereum (ETH) blockchain in just 12 seconds.
The DOJ says the brothers used their expertise in mathematics and computer science to create a unique exploit that manipulated the way Ethereum validated transactions, allowing them to steal crypto assets that were pending private transactions.
The brothers are accused of using the exploit for months and then concealing their identities, as well as covering up the digital assets they allegedly stole.
As stated by Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office, in the press release:
“These brothers allegedly committed a unique manipulation of the Ethereum blockchain by fraudulently accessing pending transactions, altering the movement of the electronic currency, and ultimately stealing $25 million in cryptocurrency from their victims.
In this case, the IRS-CI New York Cyber Unit simply followed the money. Regardless of the complexity of the case, we continue to lead financial criminal investigation efforts with cutting-edge technology and old-fashioned investigative work, both on and off the blockchain.”
The brothers have been charged with conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering. If convicted, they face a prison sentence of up to 20 years.
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