Former MIT Students Arrested for Lightning-Fast $25 Million Crypto Heist

Two US brothers, former students at the Massachusetts Institute of Technology (MIT), have been arrested and charged with allegedly participating in a multimillion-dollar crypto heist.

The theft reportedly unfolded at a record speed of 12 seconds and allegedly brought the accused, Anton Peraire-Bueno, 24, of Boston, and James Pepaire-Bueno, 28, of New York, a staggering $25 million in crypto tokens.

First-of-its-kind Crypto Scam Carried out in 12 Seconds

According to the US Department of Justice (DoJ), the April 2023 heist was the first of its kind.

“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,” Deputy Attorney General Lisa Monaco said in a press release. “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.”

Ethereum Tokens Stolen From Private Pending Transactions

Prosecutors suspect the techniques used in the high-profile heist were allegedly developed and refined during the defendants’ time at MIT, where both brothers studied computer science and mathematics.

The accused duo allegedly stole Ethereum tokens from traders by fraudulently manipulating transaction validation mechanisms and extracting cryptocurrency from pending private transactions.

$25 Million Worth of Crypto Stolen

The novel exploit allowed perpetrators to make away with $25 million worth of Ethereum in approximately 12 seconds. The accused then allegedly “rejected requests to return the stolen cryptocurrency and took numerous steps to hide their ill-gotten gains.”

The brothers have been charged with wire fraud, conspiracy to commit money laundering, and conspiracy to commit wire fraud. If found guilty, they could each face up to 20 years in prison for each count.

Scams and Heists Haunt the Cryptocurrency Realm

Heists and scams are plaguing the cryptocurrency realm, begging for heightened vigilance and awareness when handling crypto tokens, especially large amounts.

Awareness of crypto scams and how they work could give you an upper hand in the fight against digital thieves. Specialized tools like Bitdefender Ultimate Security can also better your odds against threats including scams, malware, and other intrusions that could drain your digital wallets.