According to CryptoPotato, two siblings and Massachusetts Institute of Technology (MIT) alumni are facing allegations of exploiting a vulnerability in the Ethereum blockchain to swindle $25 million. Prosecutors have labeled this as a first-of-its-kind caper. If convicted, Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, could potentially serve sentences exceeding 20 years in prison. They are facing federal charges in Manhattan for fraud and money laundering.
The accusations stem from what prosecutors describe as a meticulously planned cyber heist executed from their computers over several months. The brothers were arrested on Tuesday in Boston and New York. Deputy Attorney General Lisa Monaco commented on the development, stating that 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.
Both individuals attended MIT, where Anton completed his Bachelor of Science in computer science and mathematics in February, while James obtained a Master of Science in aeronautics and astronautics in 2021. Prosecutors allege that the brothers used their advanced expertise acquired at MIT to manipulate Ethereum’s transaction validation process. They reportedly targeted Ethereum traders by fraudulently accessing pending private transactions and subsequently modifying them to acquire their victims’ cryptocurrency.
When confronted by an Ethereum representative, authorities allege that the brothers refused to return the funds. Instead, they are accused of laundering the funds and concealing their ill-gotten gains.