Key Takeaways
- A “first-of-its-kind” alleged crypto heist is going to trial this week.
- In May 2024, the Justice Department accused two brothers, Anton Peraire-Bueno, 25, and James Pepaire-Bueno, 29, of stealing $25 million in cryptocurrency.
- Prosecutors allege the duo “plotted for months and executed in seconds.”
In May 2024, the Justice Department charged two brothers with “conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering” for a “novel scheme” that allegedly exploited the Ethereum blockchain.
Anton Peraire-Bueno, 25, and James Pepaire-Bueno, 29, allegedly obtained $25 million worth of cryptocurrency in just 12 seconds, according to the unsealed indictment. The agency said it is a “first-of-its-kind wire fraud and money laundering scheme” that “calls the very integrity of the blockchain into question.”
“These brothers allegedly committed a first-of-its-kind manipulation of the Ethereum blockchain by fraudulently gaining access to pending transactions, altering the movement of the electronic currency, and ultimately stealing $25 million in cryptocurrency from their victims,” said Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office at the time.
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The indictment alleges that the Pepaire-Bueno brothers both “studied computer science and math at one of the most prestigious universities in the world” and used those “specialized” skills to pull off the alleged “cutting-edge scheme.”
The “prestigious” university in question has since been named as the Massachusetts Institute of Technology (MIT), a top technology and science college in Cambridge, Mass. While James was on campus, he may have competed in more than 25 regattas during his four years at the school, according to the athletics webpage affiliated with MIT.
Business Insider reports that, at a hearing last week, the brothers rejected even considering a plea deal because there was no heist at all. The trial begins on Tuesday.
During oral arguments in June, attorneys for the brothers said that the blockchain has “no central authority” and “no government regulations.” They noted that the victims in this case “made very risky bets on a strategy that didn’t pay out,” so that means “there was no theft, as that word would normally be used.”
Related: Why Retirement Plans May Be the Next Big Crypto On-Ramp
Further, they added that their clients were “thwarting a predatory attempt by ‘bots’ engaged in market manipulation” and would have never thought that could have “led to criminal charges.”
Prosecutors aren’t so sure. They allege that the brothers’ Internet searches included “how to wash crypto” and “top crypto lawyers.”
Jurors were reportedly told the trial could last through November, per Business Insider. The brothers would face a maximum of 20 years in prison for each count if convicted.
Key Takeaways
- A “first-of-its-kind” alleged crypto heist is going to trial this week.
- In May 2024, the Justice Department accused two brothers, Anton Peraire-Bueno, 25, and James Pepaire-Bueno, 29, of stealing $25 million in cryptocurrency.
- Prosecutors allege the duo “plotted for months and executed in seconds.”
In May 2024, the Justice Department charged two brothers with “conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering” for a “novel scheme” that allegedly exploited the Ethereum blockchain.
Anton Peraire-Bueno, 25, and James Pepaire-Bueno, 29, allegedly obtained $25 million worth of cryptocurrency in just 12 seconds, according to the unsealed indictment. The agency said it is a “first-of-its-kind wire fraud and money laundering scheme” that “calls the very integrity of the blockchain into question.”
“These brothers allegedly committed a first-of-its-kind manipulation of the Ethereum blockchain by fraudulently gaining access to pending transactions, altering the movement of the electronic currency, and ultimately stealing $25 million in cryptocurrency from their victims,” said Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office at the time.
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