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# TWO BROTHERS ACCUSED OF STEALING $25 MILLION IN CRYPTOCURRENCY
Two brothers, Anton Peraire-Bueno and James Peraire-Bueno, were arrested for allegedly orchestrating a sophisticated scheme to steal around $25 million worth of cryptocurrency from the Ethereum blockchain. The brothers, who studied math and computer science at MIT, utilized their skills to exploit a vulnerability in the Ethereum blockchain, according to prosecutors.
# THE PLANNED HEIST
Despite the heist taking only seconds to execute, the brothers spent months meticulously planning the attack. The indictment reveals that they devised a four-step plan, starting in December 2022, which included creating an online document outlining their strategy: The Bait, Unblinding the Block, The Search, and The Propagation.
# THE EXECUTION
The brothers set up a network of Ethereum validators to conceal their identities using shell companies, intermediary cryptocurrency addresses, foreign exchanges, and a privacy layer network. By targeting three traders and setting up bait transactions to attract their bots, the Peraire-Bueno brothers gained access to their victims’ cryptocurrency by exploiting a vulnerability in Ethereum’s code, which has since been patched.
# MONEY LAUNDERING AND INVESTIGATION
Following the theft, the brothers allegedly laundered the stolen funds through a series of shell companies. Their online search history post-theft revealed inquiries about crypto lawyers, statutes of limitations for fraud and money laundering, and fraudulent Ethereum access databases. Victims and representatives from Ethereum attempted to contact the brothers in the months following the incident.
# POSSIBLE CONSEQUENCES
If convicted, each brother faces up to 20 years in prison for wire fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. Deputy Attorney General Lisa Monaco commended the Department of Justice prosecutors and IRS agents for uncovering the scheme.
Sources: Department of Justice, prosecutors
