New Delhi: Shocking exploit on Ethereum blockchain two graduates of MIT, Anton Peraire-Bueno, 24 and James Peraire-Bueno, 28 were arrested and charged with Fraud as well as money laundering. As per the federal prosecutors in Manhattan, the brothers took an advantage of a hacking loophole in the cryptocurrency system to carry out a fast heist that resulted into $25 million within twelve seconds.
According to Damian Williams: “Two brothers who had studied computer science and mathematics at one of the most prestigious universities worldwide are alleged to have used their knowledge and experience in meddling with millions of Ethereum coins worldwide.” The protocol is what users depend on.
They add that Anton also has a Bachelor’s degree in Computer Science among other achievements from Massachusetts Institute of Technology while his brother holds Master’s degree in Aeronautics and Astronautics among other qualifications from Massachusetts Institute of Technology.
Perel-Bueno brothers’ scheme details indicate they took many months planning about the robbery. By setting up validators that confused other trader bots, they manipulated transaction orders on Ethereum network allowing them to steal $25m quickly.
The next step is to launder this stolen money through intricate web of transactions so as to hide its source. To further facilitate their laundering activities, these two siblings established bogus companies specifically targeting crypto exchanges which invoice little if any customer verification procedures.
The arrest was allegedly made by US Department of Justice for stopping frauds and wrongdoings conducted within the cryptocurrency industry. This case follows other high-profile convictions like Sam Bankman-Fried who was another FTX alumnus.
Legal representatives for both Perel-Bueno siblings have not commented yet following arrests. Their detainments on Tuesday by police across Boston and New York marked a move for cracking down on technologically sophisticated manipulations involving illegal activities within the space for cryptocurrencies.
