Two brothers educated at one of the most prestigious universities in the United States have been charged with stealing $25 million (£20 million) in cryptocurrency in seconds. Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, stand accused of wire fraud and money laundering.

A High-Tech Heist

The US Department of Justice announced that the alleged heist, carried out in April 2023, is unprecedented in its sophistication and speed. Deputy Attorney General Lisa Monaco described the event as a “technologically sophisticated, cutting-edge scheme” meticulously planned over months and executed in mere seconds.

Agents from the Internal Revenue Service (IRS) played a crucial role in uncovering the scheme. The Peraire-Bueno brothers, reportedly educated at the Massachusetts Institute of Technology (MIT), used their specialized skills in mathematics and computer science to exploit the Ethereum blockchain.

How the Scheme Worked

Prosecutors allege that the brothers manipulated Ethereum’s transaction validation process. They allegedly gained access to pending private transactions and altered them to divert the cryptocurrency to their own accounts. This swift manipulation, referred to by the brothers as “the Exploit,” took only seconds to complete.

US Attorney Damian Williams emphasized the gravity of the crime, noting that the defendants’ actions “call the very integrity of the blockchain into question.” The blockchain, a public ledger that records all cryptocurrency transactions, relies on its perceived incorruptibility and transparency.

Refusal to Return Stolen Funds

When confronted by a representative from Ethereum, the brothers reportedly refused to return the stolen funds. Instead, they took measures to launder and conceal their illicit gains, further complicating the recovery process.

This case marks the first instance of such a novel form of fraud facing criminal charges. If convicted, Anton and James Peraire-Bueno each face over 20 years in prison. The case highlights the ongoing challenges in securing digital currencies and the evolving nature of financial crimes in the digital age.