MA Man And His Brother Accused Of Stealing $25M In Cryptocurrency

BOSTON, MA — A pair of brothers, one of whom is from Boston, have been charged with attacking a blockchain and stealing $25 million in cryptocurrency, the U.S. Department of Justice announced Wednesday.

The men, Boston's Anton Peraire-Bueno, 24, and New York's James Pepaire-Bueno, 28, have each been indicted on charges of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering after being accused of exploiting "the very integrity of the Ethereum blockchain to fraudulently obtain approximately $25 million worth of cryptocurrency within approximately 12 seconds," according to officials.

To do this, the brothers gained access to pending transactions and redirected the electronic currency, Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation said Wednesday. The planning process took months, the Department of Justice said.

But after their arrests Tuesday, the justice system acted quickly. The pair appeared before judges in their respective districts Wednesday.

"Unfortunately for the defendants, their alleged crimes were no match for Department of Justice prosecutors and IRS agents, who unraveled this first-of-its kind wire fraud and money laundering scheme," Deputy Attorney General Lisa Monaco said Wednesday. "As cryptocurrency markets continue to evolve, the Department will continue to root out fraud, support victims, and restore confidence to these markets."

U.S. Attorney Damian Williams for the Southern District of New York added that the duo, who studied computer science and math at one of the most prestigious universities in the world, allegedly "used their specialized skills and education to tamper with and manipulate the protocols relied upon by millions of Ethereum users across the globe."

If convicted, Anton Peraire-Bueno and James Pepaire-Bueno each face a maximum penalty of 20 years in prison for each count.