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Justice Department Charges Brothers in 12-Second $25 Million Ethereum Heist – NBC New York
- The Department of Justice has indicted two brothers for allegedly manipulating the Ethereum blockchain to steal $25 million in cryptocurrency in about 12 seconds.
- Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, were arrested Tuesday on charges of wire fraud and money laundering.
- The charges come as investors await an SEC ruling on an Ethereum ETF.
THE Department of Justice on Wednesday announced the indictment of two brothers for allegedly stealing $25 million cryptocurrency within approximately 12 seconds.
DOJ called it a “first-of-its-kind” fraud, detailing the seconds-long scheme in which the brothers allegedly manipulated the Ethereum blockchain to redirect pending transactions and steal $25 million in cryptocurrency.
“As we argue, Defendants’ scheme calls into question the very integrity of blockchain,” U.S. Attorney Damian Williams for the Southern District of New York said in a statement.
Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, were arrested Tuesday on charges of wire fraud and money laundering.
The Peraire-Bueno brothers studied mathematics and computer science “at one of the most prestigious universities in the country,” according to the Justice Department, adding that the education helped them carry out the alleged fraud.
If convicted, the brothers face a maximum of 20 years in prison on each of the three counts they are accused of.
The allegations come ahead of the U.S. Securities and Exchange Commission’s long-awaited decision on whether to approve an exchange-traded fund for Ethereum, which would allow investors to access the Ether token without having to own the cryptocurrency directly. The deadline for the SEC to complete its review before a ruling is later this month.
Issuers of Bitcoin ETFs have already been bearish on the chances of the SEC approving an ether ETF.
The Justice Department’s announcement of the alleged fraud could spark further skepticism as the SEC completes its Ethereum ETF review.
SEC Chairman Gary Gensler has previously expressed concern that a lack of regulation in cryptocurrency markets could make them a dangerous stock for investors.
“To me, the fundamental question is: How do we ensure that the American investor is protected? And right now, they’re not getting the information they want or need,” Gensler said in an interview on CNBC’s “Squawk Box” all beginning of this article. month. “And the brokers at the center of this fairly centralized market are generally conflicted and doing things that we would never allow the New York Stock Exchange to do.”
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