The United States Department of Justice (DOJ) charged two brothers, Anton Peraire-Bueno, 24 years old, and James Pepaire-Bueno, 28, for orchestrating an attack on the Ethereum Blockchain. Police arrested Anton in Boston and his brother James in New York.

The two brothers carried out a scheme to exploit the Ethereum network. They stand accused of defrauding the Ethereum Blockchain of cryptocurrency valued at $25 million in just 12 seconds. The Peraire-Bueno brothers used their computer science and mathematics knowledge and their cryptocurrency trading skills to execute the Ethereum Blockchain attack. 

Fraudulent activity involves exploiting pending transactions. By adjusting the protocol overseeing transaction validation, hackers gained unauthorized access to alter transactions and steal cryptocurrencies.

U.S. Attorney Damian Williams for the Southern District of New York said that the brothers’ actions raised many doubts and questions among citizens about the honesty of popular blockchain protocols. The attack is believed to be the first of its kind. This brings a new level of scrutiny to cybersecurity and highlights the weaknesses inherent in blockchain technology. 

Deputy Attorney General Lisa Monaco stressed the Department of Justice’s commitment to combating fraud in cryptocurrency markets, restoring confidence, and supporting victims of such crimes.

Prosecution attempts

IRS-CS New York’s Cyber Investigations Unit led the probe into the $25 million Ethereum exploits. They received support from the United States Customs and Border Protection. The New York City Police Department also assisted. Assistant U.S Attorneys Rushmi Bhaskaran and Danielle Kudla are in charge of prosecuting the case.

All legal agencies tirelessly pursue financial criminal activities on and off the blockchain. This effort underlines their commitment to preserving the integrity of financial systems.

The allegations in this case show weaknesses in blockchain technologies, particularly ones associated with maximal extractable value(MEV). These practices include value extraction from the transaction ordering in blockchain. The Peraire-Bueno brothers stole MEV-boost software employed by Ethereum validators.

Earlier this month, the DOJ accused Roger Ver, a famous crypto supporter often known as “Bitcoin Jesus’ of tax evasion worth almost $50 million. This highlights the need for robust regulatory measures and the risk associated with cryptocurrency transactions.

Also read: BlockTower Capital Hit by Hack, Funds Compromised