The US Justice Department charged two brothers with stealing $25 million in cryptocurrency within about 12 seconds.
Anton Peraire-Bueno, 24, of Boston, and James Pepaire-Bueno, 28, of New York, face charges of conspiracy to commit wire fraud and conspiracy to commit money laundering.
The Justice Department claimed the defendants exploited “the very integrity of the Ethereum blockchain” to obtain $25 million worth of cryptocurrency fraudulently.
Authorities arrested the brothers Tuesday in Boston and New York. They will appear in court before US magistrate judges Paul G. Levenson in Massachusetts and Valerie Figueredo in New York.
US Deputy Attorney General Lisa Monaco stated the brothers used “a technologically sophisticated, cutting-edge scheme” they plotted for months and executed in seconds.
“As cryptocurrency markets continue to evolve, the Department will root out fraud, support victims, and restore confidence to these markets,” she added.
US Attorney Damian Williams in New York said the brothers studied computer science and math at a prestigious university. They allegedly used their skills to tamper with and manipulate protocols millions of Ethereum users rely on worldwide.
“As we allege, the defendants’ scheme calls the very integrity of the blockchain into question,” he said. “This alleged scheme was novel and has never before been charged.”
If convicted, the Peraire-Bueno brothers each face a maximum of 20 years in prison for each count, according to the US agency.
