Former MIT Students Charged with Stealing $25 Million in Cryptocurrency in Seconds
Two former Massachusetts Institute of Technology students have been arrested on charges of orchestrating a sophisticated scheme that exploited the Ethereum blockchain to steal $25 million in cryptocurrency within 12 seconds.
Federal prosecutors in Manhattan announced the arrest of brothers Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, describing their method as “novel” and marking the first time such a fraud has been prosecuted in the United States.
The brothers allegedly executed their heist in April 2023 by fraudulently accessing pending transactions on the Ethereum blockchain and manipulating the movement of cryptocurrency. This swift operation raised serious concerns about the blockchain’s integrity.
“As we allege, the defendants’ scheme calls the very integrity of the blockchain into question,” U.S. Attorney Damian Williams stated.
The indictment charges the Peraire-Bueno brothers with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Anton was arrested in Boston, and James was apprehended in New York. Their attorneys have yet to respond to requests for comment.
Both brothers attended MIT, where they studied computer science and mathematics, acquiring the skills necessary to execute their scheme. According to the indictment, they spent months planning how to exploit protocols used to validate Ethereum transactions.
Prosecutors allege the brothers exploited a vulnerability in the MEV-boost software, commonly used by Ethereum network validators responsible for verifying transaction validity before adding them to the blockchain.
Following the theft, the brothers allegedly refused to return the stolen funds and took measures to launder and conceal the cryptocurrency, further compounding their charges.
This case highlights growing concerns over the security of blockchain technology and the potential for sophisticated cybercriminals to exploit emerging vulnerabilities in the rapidly evolving cryptocurrency landscape.
