Two brothers used Ethereum protocols to steal $25 million – Department of Justice
Officials at the United States Department of Justice have announced charges against two individuals for allegedly “swindling” $25 million in stolen cryptocurrency.[ed] Validity of the Ethereum blockchain.
In a May 15 announcement, the Justice Department charged brothers Anton Perrier-Buno and James Pepey-Buno with wire fraud, wire fraud and conspiracy to commit money laundering. According to US authorities, the brothers used a technique that “calls into question the validity of the blockchain” by fraudulently withdrawing $25 million worth of crypto “within 12 seconds”.
“These brothers allegedly perpetrated a one-of-a-kind scam on the Ethereum blockchain to fraudulently access pending transactions, alter the movement of electronic currency, and ultimately steal $25 million in cryptocurrency from their victims,” said Thomas Fatoruso. Special Agent in Charge with the New York Field Office of the IRS Criminal Investigation.
The exploit is focused on controlling the maximum extractable value (MEV) in the Ethereum blockchain. In this case, the brothers allegedly deployed a series of test transactions that eventually allowed the blockchain to “prematurely release the entire content of the intended block” and steal the crypto.
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U.S. authorities said the brothers refused demands to return the stolen funds, hiding the assets using shell companies and foreign crypto exchanges and moving them into multiple wallets. If convicted, they could face up to 20 years in prison for each charge.
Blockchain security platform CertiK reports that victims of crypto hacks, exploits and scams lost around $25 million in April – the lowest monthly figure since 2021. The platform reports that in 2023, around $1 billion worth of crypto was lost to illegal actors.
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