Ethereum hackEthereum (Kanchanara / Unsplash)


Two brothers, Anton Peraire-Bueno, aged 24 from Boston, and James Peraire-Bueno, aged 28 from New York, have been indicted for conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The charges stem from an alleged sophisticated scheme designed to exploit the Ethereum blockchain, resulting in the fraudulent acquisition of approximately $25 USD million worth of cryptocurrency in just 12 seconds. Both brothers were arrested yesterday in their respective cities and are scheduled for initial appearances before U.S. Magistrate Judge Paul G. Levenson for the District of Massachusetts and U.S. Magistrate Judge Valerie Figueredo for the Southern District of New York this afternoon.

Deputy Attorney General Lisa Monaco commented, “The Peraire-Bueno brothers stole $25 million in Ethereum cryptocurrency through a technologically sophisticated, cutting-edge scheme they plotted for months and executed in seconds,” further emphasizing the relentless pursuit of financial fraud by the Department of Justice and IRS agents.

U.S. Attorney Damian Williams for the Southern District of New York highlighted the unprecedented nature of the scheme, stating that the defendants’ actions called into question the integrity of the blockchain. Williams noted the brothers’ specialized skills acquired through their education in computer science and mathematics, alleging that they manipulated Ethereum’s protocols to execute their heist swiftly.

Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office added, “These brothers allegedly committed a first-of-its-kind manipulation of the Ethereum blockchain by fraudulently gaining access to pending transactions, altering the movement of the electronic currency, and ultimately stealing $25 million in cryptocurrency from their victims.”

The indictment outlines how the brothers meticulously planned the scheme over several months, utilizing their knowledge of cryptocurrency trading and taking steps to conceal their identities and the stolen proceeds. If found guilty, Anton Peraire-Bueno and James Peraire-Bueno face a maximum penalty of 20 years in prison for each count.

No actual details of the hack were announced to the public, but this shows that despite the rising prices for cryptocurrency, it is still not a bulletproof technology when it comes to hacking.