The U.S. Department of Justice (DOJ) has arrested two brothers accused of leading an attack on the Ethereum blockchain that resulted in the theft of $25 million worth of cryptocurrency.
Anton Peraire-Bueno of Boston and James Pepaire-Bueno of New York were charged with wire fraud, wire fraud and criminal conspiracy. money laundering.
12 second Ethereum attack
that much DOJ prosecution The defendants allege that they fraudulently exploited the integrity of the Ethereum blockchain to obtain significant sums of money in as little as 12 seconds. The brothers were arrested in Boston and New York and are scheduled to appear before magistrates in each area.
Deputy Attorney General Lisa Monaco described the plan as a “technically sophisticated” and “carefully planned” effort that was executed in seconds.
The indictment revealed that the defendants conspired. exploit For several months, I have been manipulating the protocols of the Ethereum blockchain, leveraging my computer science and mathematics knowledge and expertise in cryptocurrency trading.
Anton Peraire-Bueno and James Pepaire-Bueno gained unauthorized access by manipulating pending transactions and altering the price movements of Ethereum, ultimately stealing $25 million from unsuspecting victims.
Brothers sentenced to maximum prison sentence
Damian Williams, U.S. attorney for the Southern District of New York, emphasized the significance of the case, arguing that the defendants’ actions called into question the integrity of the blockchain.
The indictment highlights the charges against the defendant. Protocol utilization “Millions of Ethereum users around the world” rely on it.
Despite being the first scheme to manipulate the Ethereum blockchain, prosecutors in the Southern District of New York have vowed to pursue those who attack the financial system.
They emphasized that no matter how sophisticated the fraud is or the unique techniques used, perpetrators will be held accountable.
Special Agent in Charge Thomas Fattorusso of the IRS-Criminal Investigation (IRS-CI) New York Field Office emphasized that the department has: traces of money In this case, we use “state-of-the-art” and traditional investigative methods both on and off blockchain.
Fattorusso highlighted the alleged manipulation of the Ethereum blockchain by the defendants, who fraudulently accessed and altered pending transactions to steal cryptocurrency from victims. Fattorusso argued:
The brothers are initially accused of manipulating the Ethereum blockchain by fraudulently accessing pending transactions, altering the movement of electronic money, and ultimately stealing $25 million in cryptocurrency from victims.
If found guilty, Anton Peraire-Bueno and James Pepaire-Bueno could face up to two years in prison. bit 20 years for each count.
At the time of writing this report, Ethereum is trading at $2,982, meaning that the price has increased by 3% in the last 24 hours. This upward trend follows Bitcoin’s 5.5% surge over the same period as it struggles to regain the $65,000 milestone.
Featured image from Shutterstock, chart from TradingView.com