Two MIT graduates who are brothers have been arrested for allegedly exploiting the Ethereum blockchain and stealing $25 million in a groundbreaking case. Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, are facing charges of fraud and money laundering. The scheme was described by federal prosecutors as a carefully planned and executed digital heist. The brothers allegedly manipulated the protocols used by Ethereum users worldwide to deceive traders and gain access to pending transactions. They then altered the flow of electronic currency, effectively stealing the assets. To cover their tracks, they moved the stolen funds through complex transactions and utilized cryptocurrency exchanges with lax KYC procedures. The brothers extensively researched extradition procedures in their thorough preparation for the operation. This incident is just one example of the growing trend of cryptocurrency theft. The United Nations recently reported that North Korea laundered $147.5 million in stolen cryptocurrency through the Tornado Cash platform in March alone. North Korean suspects have been linked to 97 cyberattacks on crypto firms over the past seven years, totaling approximately $3.6 billion. Despite these incidents, there have been some successful recovery efforts. In March, approximately $100 million of stolen cryptocurrency funds were recovered, representing 52.8% of the total hacked amount. However, in the first quarter of 2024, total losses from hacking and fraudulent activities reached approximately $336.3 million. Ethereum and the BNB Chain were the most targeted blockchains, accounting for 73% of the total losses. Hacking incidents made up 95.6% of the losses, while scams and rug pulls accounted for 4.4%.
