Two brothers, former MIT students, indicted in $25m crypto heist that took only seconds

Two brothers who studied mathematics and computer science at MIT were accused of hacking the Ethereum blockchain to steal $25 million worth of crypto in 12 seconds.

The US Department of Justice said the exploit by the brothers, Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, was believed to be the first of its kind, “as they manipulated and tampered with the process and protocols by which transactions are validated and added to the Ethereum blockchain.”

US Attorney Damian Williams said the brothers’ “scheme calls the very integrity of the blockchain into question.”

The two were charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering.

Validators

When a validator is selected on the Ethereum blockchain, the indictment noted, they have about 12 seconds to complete the process.

The brothers drew up a complex four-step plan and established a series of Ethereum validators through concealed identities and shell companies in their months-long preparation for the exploit in April 2023, when they drained $25 million in funds from the blockchain, the indictment said.

After obtaining the money the two refused requests to return it and took steps to hide the stolen funds, according to the indictment.