ALBAWABA - The U.S. Department of Justice has detained two brothers from New York and Boston in federal custody for breaching the Ethereum network and stealing $25 million worth of Ethereum in only 12 second, according to an indictment released on Wednesday, describing the fraud as “first-of-its kind.”
Anton Peraire-Bueno, 24, and James Pepaire-Bueno, 28 are accused in the indictment of conspiring to commit wire fraud, wire fraud, and money laundering following a brief scheme in which they purportedly manipulated the Ethereum blockchain to reroute ongoing transactions and steal $25 million in cryptocurrency.
According to the DOJ, the Peraire-Bueno brothers attended one of the most prominent universities in the United States to study math and computer science, noting that their education would have provided them with the skills which enabled them to carry out the alleged fraud, for which they could face up to 20 years sentence on each of the three charges if found guilty.
Deputy Attorney General Lisa Monaco stated that “the Peraire-Bueno brothers stole $25 million in Ethereum cryptocurrency through a technologically sophisticated, cutting-edge scheme they plotted for months and executed in seconds,” adding that “as cryptocurrency markets continue to evolve, the Department will continue to root out fraud, support victims, and restore confidence to these markets.”
The allegations emerge ahead of the Securities and Exchange Commission's anticipated decision regarding whether or not to authorize an Ethereum exchange-traded fund, which would offer investors accessibility to the ether token without actually owning the cryptocurrency, according to CNBC, with the SEC's to issue a decision is later this month as a deadline to finish its study.
