Brothers Hack Ethereum Protocols in $25M Crypto Heist

Brothers hack Ethereum protocols to steal $25M crypto in a first-of-its-kind manipulation of the Ethereum blockchain.

An indictment has been unsealed by the United States Department of Justice, which charges two individuals engaged in a conspiracy to steal $25 million worth of cryptocurrency by “exploiting the very integrity of the Ethereum blockchain.”

The Justice Department charged James Pepaire-Bueno and Anton Peraire-Bueno, brothers, with conspiracy to commit money laundering, wire fraud, and wire fraud in a notice dated May 15. According to U.S. officials, the brothers obtained $25 million worth of cryptocurrency fraudulently “within approximately 12 seconds” using a scheme that “calls into question the very integrity of the blockchain.”

“By fraudulently gaining access to pending transactions, altering the movement of the electronic currency, and ultimately stealing $25 million in cryptocurrency from their victims, these brothers allegedly committed the first-of-its-kind manipulation of the Ethereum blockchain,” said Thomas Fattorusso, a special agent with the IRS Criminal Investigation’s New York Field Office.

U.S. authorities said the brothers denied requests to return the stolen funds and hid the assets across multiple wallets using shell corporations and foreign cryptocurrency exchanges. They could spend twenty years in prison for each count if found guilty.