12-Second Exploit
The US Department of Justice (DOJ) has arrested two brothers, Anton and James Pepaire-Bueno, for allegedly orchestrating a sophisticated attack on the Ethereum blockchain. The brothers are accused of stealing $25 million in crypto within just 12 seconds.
Manipulation of Protocols
The indictment alleges that the brothers exploited the Ethereum blockchain’s protocols by tampering with pending transactions. They used their knowledge of computer science and crypto trading to manipulate the price of Ethereum, allowing them to steal from unsuspecting victims.
Consequences
If convicted, Anton and James Pepaire-Bueno could face up to 20 years in prison for each count of wire fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
Significance
US Attorney Damian Williams emphasized the significance of the case, stating that the defendants’ actions undermined the integrity of the blockchain. The DOJ vowed to pursue those who attack financial systems, regardless of the sophistication of their methods.
Investigation
The IRS Criminal Investigation (IRS-CI) used “cutting-edge technology” and traditional methods to follow the money trail and uncover the alleged manipulation of the Ethereum blockchain.
