tl;dr
Two brothers, Anton Peraire-Bueno and James Pepaire-Bueno, have been arrested by the U.S. Department of Justice for attacking the Ethereum blockchain and stealing $25 million of cryptocurrency. They are charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money launderi...
Two brothers, Anton Peraire-Bueno and James Pepaire-Bueno, have been indicted for attacking the Ethereum blockchain, exploiting MEV-boost, and stealing $25 million in cryptocurrency. The charges include conspiracy, wire fraud, and money laundering, marking a first-of-its-kind criminal action related to MEV. They are alleged to have exploited a bug in MEV-boost's code to manipulate pending transactions, leading to the $25 million theft. The stolen funds were allegedly laundered through various addresses and transactions, converting them into DAI and USDC.
The brothers were arrested by the U.S. Department of Justice, with the charges representing a significant milestone as the first criminal action related to MEV. MEV, or maximal extractable value, is a controversial practice on Ethereum allowing operators to preview upcoming transactions to profit.
The indictment outlines how the brothers exploited MEV-boost, a software used by Ethereum validators, to manipulate transactions and ultimately steal cryptocurrencies. They reportedly created 16 Ethereum validators and targeted specific traders with MEV bots, using bait transactions to manipulate trades and front-run the bots, resulting in the theft of $25 million.
The stolen funds were then allegedly laundered through various transactions, including the conversion of funds into DAI and USDC. Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation described it as a "first-of-its-kind manipulation of the Ethereum blockchain," involving altering pending transactions and ultimately stealing $25 million in cryptocurrency.
The indictment also details the brothers' plans, launch of shell companies, test transactions, and internet search histories, providing insights into their alleged criminal activities.
Disclaimer: The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.