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Brothers accused of stealing $25 million in cryptocurrency in 12 seconds
Two brothers who traveled to the Massachusetts Institute of Technology are facing fraud charges after prosecutors say the pair plotted to obtain $25 million in cryptocurrency in just 12 seconds.
Brothers Anton Peraire-Bueno and James Peraire-Bueno were charged with conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering, according to a news release from United States Attorney’s Office in the Southern District of New York.
Calling their alleged actions a “new scheme by the defendants to exploit the very integrity of the Ethereum blockchain,” the Justice Department said they were arrested Tuesday in Boston and New York.
Ethereum is a technological system used for digital money, payments and global applications, according to its website.
“The brothers, who studied computer science and mathematics at one of the world’s most prestigious universities, allegedly used their specialized skills and education to tamper with and manipulate the protocols relied on by millions of Ethereum users around the world,” said U.S. Attorney Damian. Williams said in the press release.
This is the first time anyone has been charged in a scheme of this magnitude, Williams said, again calling it “a first.”
The brothers traveled to the Massachusetts Institute of Technology, a spokesperson for the school confirmed to USA TODAY Thursday afternoon.
Anton earned a bachelor’s degree in computer science and engineering in February.
James earned a bachelor’s degree in mathematics with computer science and aerospace engineering in June 2019, the school said. He also has a master’s degree in aeronautics and astronautics, graduating in June 2021.
Attorneys for the couple did not immediately respond to USA TODAY’s requests for comment.
The brothers had been planning a 12-second heist for months
The project was planned for months and completed in seconds, the Justice Department said in a news release.
IRS-CI Special Agent in Charge Thomas Fattorusso said in the release that the brothers accessed the pending transactions and altered the electronic currency transfer, “ultimately stealing $25 million in cryptocurrency from their victims.”
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“The New York IRS-CI Cyber Unit simply followed the money,” Fattorusso said. “Regardless of the complexity of the case, we continue to lead the charge in financial criminal investigations with cutting-edge technology and old-fashioned investigative work, on and off the blockchain.”
According to the indictment, the brothers denied requests for the return of the stolen cryptocurrency.
Both Anton, 24, and James, 28, were charged with conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering.
Each charge carries a maximum sentence of 20 years in prison.
Saleen Martin is a reporter for USA TODAY’s NOW team. She’s from Norfolk, Virginia – the 757. Follow her on Twitter at @SaleenMartin or send her an email at sdmartin@usatoday.com.