The Department of Justice (DOJ) has charged two brothers for their supposed involvement in a $25 million cryptocurrency theft on the Ethereum blockchain.

Anton Peraire-Bueno, 24, and James Pepaire-Bueno, 28, are now under the charges of wire fraud and money laundering after their arrest in Boston and New York, respectively.

Details of the DOJ’s Indictment and Arrests

The indictment unsealed on Wednesday reveals that the Peraire-Bueno brothers were involved in a well-structured plan to use the Ethereum blockchain to obtain around $25 million of cryptocurrency illegally. Their plan allegedly was carried out in just 12 seconds, using the computer science and mathematics knowledge and skills they had from a top university.

U.S. Attorney Damian Williams for the Southern District of New York stressed the seriousness of the violation by saying that the brothers’ actions have made people question the honesty of popular blockchain protocols.

The indictment, in addition, shows that the supposed exploit was the first of its kind, thus bringing a new level of complexity to cybersecurity and legal enforcement in the cryptocurrency field.

Investigation and Prosecution Efforts

The investigation, which was carried out by the IRS-CI New York’s Cyber Investigations Unit, with the help of U. S. Customs and Border Protection and the New York City Police Department, showed a strong response to the complicated nature of blockchain-related crimes.

Assistant U. S. Attorneys Rushmi Bhaskaran and Danielle Kudla are in charge of prosecuting the case, which shows the government’s dedication to dealing with and preventing technological fraud.

Special Agent in Charge Thomas Fattorusso from the IRS-CI emphasized the meticulous character of the financial investigation. Despite the technical difficulties, traditional investigative methods turned out to be effective in tracing the defendants’ illegal transactions.

Context and Implications of Blockchain Security

Such a case highlights the possible weaknesses in blockchain technologies, especially those connected with maximal extractable value (MEV) practices. These practices, which include value extraction from the transaction ordering in a blockchain, can possibly be abused, as the Peraire-Bueno brothers suggest.

This case, as a result, is a part of the series of actions by the DOJ that is directed at making the cryptocurrency market more regulated.  Concurrently, at the beginning of this month, the DOJ accused Roger Ver, a famous cryptocurrency supporter often called “Bitcoin Jesus,” of tax evasion worth almost $50 million.

Ver’s case, which involves allegations of misreporting bitcoin holdings following his renouncement of U.S. citizenship, underscores the broader crackdown on financial misconduct in the cryptocurrency sector.

Read Also: Peter Schiff Names CPI Data “Stagflation Trifecta,” Time To Buy Bitcoin?

The post Breaking: DOJ Charges Brothers in $25M Ethereum Blockchain Heist appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am