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Two Brothers Charged For Ethereum Blockchain Attack With $25 Million Stolen

Key Points:

DOJ charges brothers Anton and James Peraire-Bueno for a $25 million Ethereum blockchain attack.
Allegedly exploiting the Ethereum blockchain, they stole cryptocurrency using advanced tactics.
Each faces up to 20 years in prison for the scheme.

The Department of Justice (DOJ) has unveiled indictments against two brothers, Anton Peraire-Bueno, 24, of Boston, and James Pepaire-Bueno, 28, of New York, alleging their involvement in a sophisticated fraud and money laundering scheme.

Two Brothers Charged For Ethereum Blockchain Attack With $25 Million Stolen 2

DOJ Indicts Brothers for $25 Million Ethereum Blockchain Attack

The indictment, unsealed recently, charges the duo with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering.

According to Deputy Attorney General Lisa Monaco, the brothers are accused of orchestrating a technologically advanced scheme for the Ethereum blockchain attack.

The alleged fraud allowed them to illicitly obtain approximately $25 million worth of cryptocurrency in just 12 seconds. The charges stem from their exploitation of a flaw in the open-sourced MEV-boost-relay implementation maintained by Flashbots, targeting the ultrasound relay from numerous sandwich bots.

The most value that can be obtained from a proposed block by organizing and sequencing transactions is known as the maximal extractable value, or MEV. The transactions included and their order are entirely within the hands of the people proposing the block. These proposers position their own transactions carefully to increase their profitability by maximizing the additional value within a block.

Maximum Penalty Looms for Accused Brothers in Cryptocurrency Scheme

The indictment outlines how Anton and James, both with backgrounds in mathematics and computer science, meticulously planned the Ethereum blockchain attack over several months. Utilizing their expertise in cryptocurrency trading and blockchain technology, they manipulated the Ethereum blockchain’s integrity to access pending transactions, alter the movement of electronic currency, and steal from unsuspecting victims.

The brothers face severe consequences if convicted, with each count carrying a maximum penalty of 20 years in prison.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.