Jason Peraire-Bueno, 28, of New York, and Anton Peraire-Bueno, 24, of Boston have been charged with wire fraud, plot to commit wire fraud, and conspiracy to commit money laundering.
The charges are related to a complicated plan to take advantage of the Ethereum blockchain, which led to the theft of 24 seconds worth of cryptocurrency worth about $25 million.
A sophisticated theft using technology
The accusation that was made public today says that the Peraire-Bueno brothers carefully planned their scheme over a prolonged period.
Following their education at one of the world’s most prestigious universities, the brothers reportedly hacked the Ethereum blockchain’s transaction validation process by using their advanced computer science and math skills.
This cheating gave them access to pending deals without permission, let them change them, and let them steal cryptocurrency from traders who weren’t paying attention.
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Speaking about the case, US Department of Justice Deputy Attorney General Lisa Monaco reported, “As alleged in today’s indictment, the Peraire-Bueno brothers stole $25 million in Ethereum cryptocurrency through a highly sophisticated and cutting-edge scheme they planned for months and carried out in seconds.
” Unfortunately for the defendants, prosecutors and IRS agents from the Department of Justice and the IRS broke down this unprecedented plan to launder money and commit wire fraud.
Legal Actions and Possible Results
In each city, the brothers were taken yesterday. They are due to appear this afternoon before U.S. Magistrate Judge Paul G. Levenson in the District of Massachusetts and U.S. Magistrate Judge Valerie Figueredo in the Southern District of New York.
Anthony Anton and James Peraire-Bueno could each spend up to 20 years in jail for each count if they are found guilty.
Federal Prosecutor Damian Williams for the Southern District of New York said this about the seriousness of the case: “As we allege, the defendants’ scheme calls the very integrity of the blockchain into question.”
The brothers are computer science and math majors at one of the world’s most prestigious colleges.
They are accused of using their advanced knowledge and skills to change and mess with the protocols that millions of Ethereum users around the world depend on.
It only took 12 seconds to finish their heist once they implemented their plan.
Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office said, “In this case, the Cyber Unit of IRS-CI New York just followed the money.”
We continue to be the leaders in financial crime investigations, using cutting-edge technology and good old-fashioned detective work, on and off the blockchain, no matter how complicated the case is.
Assistant U.S. Attorneys Rushmi Bhaskaran and Danielle Kudla for the Southern District of New York are prosecuting the case.
The investigation was led by the Criminal Investigations Section of the Internal Revenue Service (CI) New York, U.S. Customs and Border Protection, and the New York City Police Department.
Although the bitcoin market is still changing, this case is a stark reminder of how hard law enforcement works to stop fraud, help victims, and restore trust in these digital financial systems.
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