Digital currencies such as #Bitcoin and #Ethereum are distributed using blockchain technology, and there is no central authority that governs this system. Two brothers studying at one of the most prestigious universities in the USA managed to steal $25 million worth of cryptocurrency in 12 seconds by manipulating the protocols trusted by millions of Ethereum users worldwide. So how did Anton Peraire-Bueno and James Pepaire-Bueno, who are in their 20s and have signed an unprecedented fraud event in the world, do this!
The demand for cryptocurrencies in the world is increasing day by day. According to experts, the reason for this interest is that crypto investments stand out as a safe haven. So, is cryptocurrency investment as safe as it is thought to be? What if we told you that one day, it is possible for you to see the cryptocurrencies you have saved by working your hardest to disappear in just a few seconds... Because, unfortunately, exactly such a situation has become a reality in the cryptocurrency world. Anton Peraire-Bueno and James Pepaire-Bueno, two brothers in their 20s who study at the Massachusetts Institute of Technology (MIT), one of the most prestigious universities in the USA, made history by stealing $25 million worth of Ethereum in just 12 seconds. But how?
Digital currencies like Bitcoin and Ethereum are distributed using blockchain technology, and there is no central authority that governs this system. Ethereum is also considered the most popular cryptocurrency after Bitcoin.
THEY MANIPULATED THE ETHEREUM BLOCKCHAIN
Anton Peraire-Bueno, 24, and James Pepaire-Bueno, 28, brothers studying mathematics and computer engineering at the Massachusetts Institute of Technology (MIT), used the special skills they acquired during their education and their expertise in cryptocurrency trading to manipulate the Ethereum blockchain. They gained access to private pending transactions by changing the protocols that verify transactions, and modified these transactions to steal victims’ cryptocurrencies.
THEY HAVE MADE A FIRST
The Peraire-Bueno brothers made the necessary plans, learned the transaction habits of their victims and developed a strategy accordingly. They manipulated the documents in question, interfered with the transaction verification process and directed the money to their own accounts. This complex fraud plan of the brothers was recorded as a first in the technology world. This incident, which especially casts a shadow on the reliability of blockchain technology, shocked many users.
The two brothers managed to steal $25 million worth of Ethereum cryptocurrency in 12 seconds with a highly technological plan that they thought about for months and implemented in seconds. They took many steps to hide their identities while carrying out their fraudulent plan. They established fake companies and used different private cryptocurrency addresses and foreign cryptocurrency exchanges to cover their tracks. They also learned how to hide themselves and track their crimes by constantly doing research online.
The two brothers managed to steal $25 million worth of cryptocurrency by manipulating protocols trusted by millions of Ethereum users worldwide. However, they were caught shortly after and arrested on charges of wire fraud and money laundering. The US Department of Justice stated that the robbery was “the first of its kind to date,” and Deputy Prosecutor Lisa Monaco said, “The Peraire-Bueno brothers stole $25 million worth of Ethereum in seconds, executing a plan they had been working on for months using very advanced, sophisticated technology.”
THEY REFUSED TO GIVE BACK THE MONEY THEY STOLE
The two brothers’ masterful plan for the crime had never been committed before, but no matter how sophisticated the scam was and how new the techniques used to pull it off, prosecutors from New York’s Cyber Unit were able to catch criminals who were attacking the integrity of entire financial systems. The brothers, Anton Peraire-Bueno in Boston and James Peraire-Bueno in New York, were arrested after allegedly gaining access to Ethereum investors’ cryptocurrencies by fraudulently accessing pending private transfer transactions. However, the brothers refused to return the stolen money and resorted to money laundering. Investigators dubbed the crime “the exploit.”
THEY WILL RECEIVE MORE THAN 20 YEARS IN PRISON EACH
Prosecutors stated that this is the first time such a "different" form of fraud has been the subject of a criminal case, and if the court finds the brothers guilty, they will each receive more than 20 years in prison. This incident has once again shown how important security measures are in the cryptocurrency world. The attack on the reliability of the Ethereum blockchain has shown how fragile cryptocurrency markets can be. This major incident, which has deeply shaken the crypto world, is an important warning for both users and investors.
