A shocking revelation has emerged from the Department of Justice, accusing a group of MIT students of stealing a staggering $25 million in just a matter of seconds. Their method? Exploiting a bug in the Ethereum blockchain technology. This unprecedented cyber heist has left authorities scrambling to catch the culprits and prevent such incidents in the future. Stay tuned for more updates on this jaw-dropping story.
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Two brothers, Anton and James Peraire-Bueno, who attended MIT, have been accused of orchestrating a sophisticated cryptocurrency scheme that allegedly allowed them to steal $25 million in just 12 seconds. According to the US Department of Justice, the brothers manipulated the ethereum blockchain to tamper with pending transactions and obtain victims’ cryptocurrency.
The indictment claims that the brothers exploited a vulnerability in the blockchain that occurred between the moment a transaction was conducted and when it was added to the blockchain. By establishing ethereum validators through shell companies and foreign exchanges, the brothers were able to alter transactions to their advantage before adding them to the blockchain.
Their scheme involved setting up bait transactions to catch the attention of specialized bots used in crypto trading. Once the bots took the bait, the brothers allegedly reordered the block structure to their benefit before adding it to the blockchain. Victims who tried to reclaim their funds were reportedly denied by the brothers, who hid the money instead.
To cover their tracks, the brothers set up shell companies, used multiple private cryptocurrency addresses, and avoided detailed KYC procedures at foreign exchanges. Their online search history revealed preparations for legal consequences, including researching top crypto lawyers and money laundering statute of limitations.
The investigation was led by Thomas Fattorusso of the IRS Criminal Investigation New York Field Office, who followed the money trail to uncover the scheme. The indictment coincides with the SEC’s pending decision on an ethereum exchange-traded fund (ETF), with SEC Chair Gary Gensler expressing skepticism about potential risks in the crypto Market.
The case highlights the growing concern around cybersecurity and financial fraud in the cryptocurrency space, with the need for stringent regulations to protect investors from similar incidents. It serves as a stark reminder of the risks associated with blockchain technology and the importance of due diligence in crypto transactions.
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1. What happened with the MIT students and the ETH blockchain bug?
The MIT students allegedly stole $25M by exploiting a bug in the ETH blockchain system.
2. How did the students steal the money in just seconds?
The students reportedly took advantage of a vulnerability in the blockchain code to quickly transfer the funds.
3. Why is the Department of Justice involved in this case?
The DOJ is likely involved to investigate the theft and potentially bring criminal charges against the students involved.
4. Are the students being accused of any other illegal activities?
As of now, the students are primarily facing accusations related to the theft of $25M from the ETH blockchain.
5. What consequences could the students face if found guilty?
If found guilty of stealing the $25M, the students could face significant legal penalties and potential jail time for their actions.
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