Federal prosecutors have charged two brothers, Anton and James Peraire-Bueno, with an audacious $25 million cryptocurrency theft carried out in just 12 seconds. The siblings, who studied at the elite Massachusetts Institute of Technology (MIT), allegedly exploited vulnerabilities in Ethereum’s transaction validation process.
According to the U.S. Department of Justice, the brothers used sophisticated skills honed at MIT to fraudulently access and alter pending Ethereum transactions, rerouting funds to their digital wallets. Prosecutors called the “Exploit” scheme unprecedented and questioned the security of blockchain technology.
The Peraire-Bueno brothers, aged 24 and 28, face charges of wire fraud and money laundering for the April 2023 caper. Authorities claim they refused to return the stolen Ethereum when confronted and took steps to conceal their illegal haul.
If convicted, the math and computer science graduates could receive over 20 years in prison. The case underscores emerging crypto-crime threats as the usage of digital currencies expands. Prosecutors aim to set a precedent by criminally pursuing this novel form of blockchain exploitation.
The brothers’ elite education and quick execution of the brazen heist have drawn attention. However, prosecutors must still prove the complex allegations of tampering with Ethereum’s core transaction validation system.
