The United States Department of Justice has unveiled an indictment accusing two individuals of orchestrating a plot to steal $25 million in cryptocurrency, which exploited the integrity of the Ethereum blockchain. The indictment, unsealed on May 15, charges brothers Anton Peraire-Bueno and James Pepaire-Bueno with multiple offenses including conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. U.S. officials claim that the brothers fraudulently acquired $25 million worth of crypto in a matter of seconds, using a scheme that raises doubts about the trustworthiness of the blockchain.
According to Thomas Fattorusso, a special agent with the IRS Criminal Investigation’s New York Field Office, the brothers allegedly executed a unique manipulation of the Ethereum blockchain. They gained unauthorized access to pending transactions, manipulated the movement of the digital currency, and eventually stole $25 million in cryptocurrency from their victims. The exploit centered around manipulating the maximum extractable value (MEV) within the Ethereum blockchain. The brothers allegedly conducted a series of test transactions that ultimately led to the premature release of a proposed block, enabling them to steal the crypto.
The U.S. authorities stated that the brothers refused to return the stolen funds and concealed the assets through shell companies and foreign cryptocurrency exchanges. They then transferred the funds to various wallets. If convicted, the brothers could face a maximum sentence of 20 years in prison for each count.
In April, victims of crypto hacks, exploits, and scams reportedly lost approximately $25 million, according to blockchain security platform CertiK. This represents the lowest monthly figure since 2021. CertiK also revealed that illicit actors had siphoned off around $1 billion in cryptocurrency in 2023.
In related news, an analysis of crypto hacks has unveiled the favorite exploit of the Lazarus Group, a notorious hacking collective.