Crypto heist: MIT grads steal $25M in 12 seconds
What's the story
Massachusetts Institute of Technology (MIT) graduates, Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, have been apprehended by federal prosecutors in Manhattan. The brothers are accused of executing a scheme to exploit the Ethereum blockchain's integrity and steal $25 million worth of cryptocurrency. This audacious heist was carried out in just 12 seconds in April 2023, marking the first time such a fraud has been the subject of US criminal charges.
Fraud
Brothers accused of manipulating blockchain transactions
The Peraire-Bueno brothers allegedly gained fraudulent access to pending transactions on the Ethereum blockchain. They are accused of altering the movement of cryptocurrency, thereby stealing $25 million from traders. US Attorney Damian Williams stated, "As we allege, the defendants' scheme calls the very integrity of the blockchain into question," as reported by the New York Post.
Legal proceedings
Charges and arrest locations
The Peraire-Bueno brothers face charges of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Anton was arrested in Boston, while James was apprehended in New York. Both brothers studied computer science and math at MIT, with prosecutors asserting that their education and skills were instrumental in executing this elaborate fraud.
Scheme details
Alleged exploitation of Ethereum blockchain protocols
The indictment alleges that the Peraire-Bueno brothers plotted for months to manipulate and tamper with the protocols that are used to validate transactions on the Ethereum blockchain. They reportedly exploited a vulnerability in a software called MEV-boost, used by most Ethereum network validators to verify new transactions before they are added to the blockchain. Following the heist, instead of returning the stolen funds as requested, they took steps to launder and hide the cryptocurrency.