Two attackers hacked the Ethereum Blockchain and stole $25 million worth of cryptocurrencies in approximately 12 seconds. Following this claim by prosecutors, the court arrested the two brothers this week. The case concerned “maximum extractable value,” or MEV, which is the maximum amount of value that can be extracted from a particular DeFi protocol or smart contract by a user or group of users.
DOJ charged Ethereum Blockchain hackers!
The Department of Justice (DOJ) has charged two brothers for their alleged involvement in a $25 million cryptocurrency theft of the Ethereum Blockchain. Police captured 24-year-old Anton Peraire-Bueno and 28-year-old James Pepaire-Bueno in Boston and New York, respectively. After this, the court ordered the arrest of the two brothers. The suspects are currently facing wire fraud and money laundering charges.
The indictment announced on Wednesday reveals that the Peraire-Bueno brothers were doing business according to a plan. Allegedly, the two suspects used the computer and mathematics knowledge and skills they acquired from the best universities. Thus, they carried out the attack and cryptocurrency theft in just 12 seconds. U.S. Attorney Damian Williams of the Southern District of New York emphasized the seriousness of the breach, saying the brothers’ actions caused people to question the integrity of popular blockchain protocols. Additionally, the indictment stated that the abuse in question was the first of its kind. Moreover, it has brought a new level of complexity to cybersecurity and law enforcement in the cryptocurrency space.
Investigation and prosecution efforts
The investigation, conducted by IRS-CI New York’s Cyber Investigations Unit with assistance from U.S. Customs and Border Protection and the New York Police Department, revealed the complex nature of Blockchain-related crimes. Assistant U.S. Attorneys Rushmi Bhaskaran and Danielle Kudla are in charge of prosecuting this case. The latest move demonstrates the government’s commitment to tackling and preventing technological fraud. Special Agent in Charge Thomas Fattorusso of the IRS-CI emphasized the meticulous character of the financial investigation. Despite technical difficulties, traditional investigative methods proved effective in tracking the illegal transactions of defendants.
The context and implications of blockchain security
Such a case reveals possible weaknesses in Blockchain technologies. He particularly highlights those associated with maximum extractable value (MEV) applications. These applications involve extracting value from the sequence of transactions in a Blockchain. They are likely to be misused, as the Peraire-Bueno brothers did.
This case is part of a series of actions by the DOJ aimed at making the crypto market more regulated. cryptokoin.comAs you may have seen from , this case is not the DOJ’s only crypto case. Earlier this month, the DOJ charged Roger Ver with evading almost $50 million worth of taxes. Ver is a famous cryptocurrency supporter often known as “Bitcoin Jesus.” Allegedly, Ver misreported his Bitcoin holdings after renouncing his US citizenship. The lawsuit involving these allegations underscores a broader crackdown on financial abuses in the crypto industry.
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