Two brothers who studied at the famous American University, Massachusetts Institute of Technology (MIT), have been charged with exploiting a vulnerability in the Ethereum blockchain and stealing $25 million USD in 12 seconds, in what prosecutors called a “first-of-its-kind” heist.
First-Of-Its-Kind Digital Asset Heist
Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, were charged by federal prosecutors in Manhattan with both fraud and money laundering offences. They are accused of plotting the scheme over a number of months before carrying out the incredibly fast heist in April 2023. It is reported that the funds were stolen by gaining access to pending private transactions and then altering the transactions to obtain their victims’ cryptocurrency.
Officials say that a representative for the Ethereum foundation confronted the brothers regarding the stolen funds and that they declined to return the fund and even took further steps to launder and hide their stolen assets.
“The brothers, who studied computer science and math at one of the most prestigious universities in the world, allegedly used their specialised skills and education to tamper with and manipulate the protocols relied upon by millions of Ethereum users across the globe,” said Damian Williams, the US attorney for the Southern District of New York.
🇺🇸 MIT GRADS ARRESTED FOR $25M ETHEREUM HEIST
In April 2023, brothers Anton and James Peraire-Bueno, exploited Ethereum's MEV-boost software, stealing the $25 million from traders in 12 seconds.
Prosecutors called their scheme "novel" as it is the first of its kind to face US… pic.twitter.com/ATOu65Ebgg
— Mario Nawfal (@MarioNawfal) May 15, 2024
Not the First MIT Graduates Convicted in the Crypto Sphere
The two reportedly studied at the MIT, with Anton graduating in February 2024 with a Bachelors of Science in computer science and math and James graduating with a Masters of Science in aeronautics and astronautics in June 2021.
The US Justice Department has been heavily focused on eradicating fraud and misconduct within the cryptocurrency industry, with recent convictions of several high-profile industry players, most notably Sam Bankman-Fried of FTX, who also happens to be an MIT graduate.
Ethereum is known as the largest network in cryptocurrency. There are thousands of dApps (decentralised apps) built on top of it and over $50 billion USD in TVL (total value locked).
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
The accused were “charged” not “convicted”. Conviction implies a finding of guilt by a jury or judge, followed by appropriate judicial punishment. If you want your content to be taken seriously as a financial/technology web site, learn to read and paraphrase your sources properly first.