The U.S. Department of Justice (DOJ) has charged two brothers with wire fraud and money laundering, accusing them of exploiting the Ethereum blockchain to steal $25 million in cryptocurrency in just 12 seconds. Using advanced techniques, they manipulated transactions and hid their identities. If found guilty, they could each face up to 20 years in prison for each charge.

DOJ Charges Brothers in $25M Ethereum Fraud Case

On May 15, the DOJ announced the indictment of Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, for "conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering" in a scheme to exploit the Ethereum blockchain and steal about $25 million in cryptocurrency.

Deputy Attorney General Lisa Monaco stated:

The indictment alleges that the Peraire-Bueno brothers executed a technologically sophisticated scheme to steal $25 million in Ethereum cryptocurrency within seconds after months of planning.

The brothers, with backgrounds in computer science and mathematics, manipulated Ethereum’s transaction validation process. They accessed pending transactions, altered them to redirect funds to their accounts, and used shell companies and foreign exchanges to hide their identities and the source of the stolen cryptocurrency. Arrested in Boston and New York, they face up to 20 years in prison for each count if convicted.

Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office commented: “These brothers allegedly carried out a unique manipulation of the Ethereum blockchain by fraudulently accessing pending transactions, redirecting electronic currency, and stealing $25 million in cryptocurrency from their victims.”

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