Ethereum
MIT-trained brothers accused of stealing $25 million in cryptocurrency in 12 seconds from the Ethereum blockchain system
Washington — Two brothers from New York and Boston were taken into federal custody Tuesday, accused by prosecutors of devising a new criminal scheme to steal about $25 million in cryptocurrency from a commonly used blockchain, according to a recently unsealed indictment.
Anton and James Peraire-Bueno were charged with wire fraud and conspiracy to commit money laundering. Investigators accused them of spending months planning their theft from the Ethereum blockchain, luring their victims and creating shell companies to hide their illicit profits.
According to charging documents, the two men studied mathematics and computer science “at one of the most prestigious universities in the country,” which prosecutors say provided them with a unique set of skills that allowed us to carry out this unique enterprise. in a few seconds. James Peraire-Bueno is listed as Graduate 2021 from the Massachusetts Institute of Technology and the MIT Registrar’s Office confirmed that Anton Peraire-Bueno earned a BS in Computer Science and Engineering in February 2024, and James Peraire-Bueno earned a BS in Mathematics, Computer Science, and in aerospace engineering in June 2019, as well as an MS in aeronautics and astronautics in June 2021.
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The brothers allegedly began laying the groundwork in December 2022, engaging in what investigators called a “baiting” operation targeting three specific victim traders on the Ethereum digital platform. They are notably accused of exploiting blockchain “validators”, vital elements of the integrity and security of transactions.
“In doing so, they fraudulently accessed pending private transactions and used this access to modify certain transactions and obtain their victims’ cryptocurrency,” prosecutors alleged in court documents.
Investigators said the defendants’ plot took months to plan but only 12 seconds to execute, reportedly reaping about $25 million from their unwitting victims.
Since April and June of last year, the Peraire-Buenos have been accused of laundering their money through shell companies. Prosecutors said the duo even rejected repeated requests from a victim, her lawyer and an Ethereum representative to return the cryptocurrency.
They were arrested Tuesday and are expected to make their first appearance in federal courts in New York and Boston on Wednesday.
“As the cryptocurrency markets continue to evolve, the Department of Justice will continue to root out fraud, support victims, and restore trust in these markets,” Assistant Attorney General Lisa Monaco said in a statement.
Lawyers for the brothers could not immediately be identified.
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