Two brothers, Anton Peraire-Bueno hailing from Boston and James Peraire-Bueno from New York, found themselves in handcuffs yesterday, implicated in a significant heist on the Ethereum blockchain resulting in the disappearance of crypto assets valued at $25 million.
Both siblings face charges of conspiracy to commit wire fraud and conspiracy to commit money laundering.
The US Department of Justice’s Office of Public Affairs revealed that Anton, aged 24, and James, aged 28, were apprehended on Wednesday in their respective cities and are set to appear this afternoon before U.S. Magistrate Judge Paul G. Levenson for the District of Massachusetts and U.S. Magistrate Judge Valerie Figueredo for the Southern District of New York.
Deputy Attorney General Lisa Monaco expressed, “As alleged in today’s indictment, 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.”
Lisa further stated, “Unfortunately for the defendants, their alleged crimes were no match for Department of Justice prosecutors and IRS agents, who unraveled this first-of-its-kind wire fraud and money laundering scheme. As cryptocurrency markets continue to evolve, the Department will continue to root out fraud, support victims, and restore confidence to these markets.”
U.S. Attorney Damian Williams for the Southern District of New York shed light on the matter from his perspective, stating, “Today, my office indicted two brothers — Anton Peraire-Bueno and James Peraire-Bueno — for conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, all stemming from their alleged scheme to exploit the Ethereum blockchain and to obtain about $25 million worth of cryptocurrency from it.”
Williams emphasized, “As we allege, the defendants’ scheme calls the very integrity of the blockchain into question. The brothers, who studied computer science and math at one of the most prestigious universities in the world, allegedly used their specialized skills and education to tamper with and manipulate the protocols relied upon by millions of Ethereum users across the globe. And once they put their plan into action, their heist only took 12 seconds to complete.”
Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service Criminal Investigation (IRS-CI) New York Field Office, provided intricate details of the heist and the backgrounds of the implicated brothers, revealing, “These brothers allegedly committed a first-of-its-kind manipulation of the Ethereum 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.”
Fattorusso continued, “In this case, IRS-CI New York’s Cyber Unit simply followed the money. Regardless of the complexity of the case, we continue to lead the effort in financial criminal investigations with cutting-edge technology and good-ole-fashioned investigative work, on and off the blockchain.”
The accused brothers, who pursued studies in mathematics and computer science at the Massachusetts Institute of Technology in the United States, could potentially face up to 20 years in jail for each count if indicted.
IRS-CI New York’s Cyber Investigations Unit spearheaded the investigation, receiving support from the U.S. Customs and Border Protection and the New York City Police Department.
Ethereum blockchain, being the second-largest blockchain and the native ecosystem for Ethereum, the second-largest cryptocurrency by market capitalization, remains under scrutiny amid security concerns in the cryptocurrency industry, with theft and fraud cases often dissuading potential investors and users.
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