Two brothers were recently apprehended by the U.S. Department of Justice for allegedly stealing $25 million in cryptocurrency. Anton and James Pepaire-Bueno were accused of using a sophisticated scheme to exploit the Ethereum blockchain, resulting in the theft of funds from unsuspecting users within a mere 12 seconds. The brothers are facing charges of conspiracy to commit wire fraud and money laundering.
According to Damian Williams, the U.S. Attorney for the Southern District of New York, the brothers, who had a background in computer science and mathematics from a prestigious university, manipulated the protocols relied upon by millions of Ethereum users worldwide. Their actions were a violation of trust that rocked the cryptocurrency community.
Special Agent in Charge Thomas Fattorusso of the IRS-CI highlighted the unprecedented nature of the brothers’ manipulation of the Ethereum blockchain, emphasizing their deceptive practices in accessing and altering pending transactions to steal assets. The IRS-CI is committed to investigating financial crimes of this nature to maintain the integrity of the financial system.
In a separate development, the Department of Justice recently appointed consulting firm Forensic Risk Alliance (FRA) as the watchdog for Binance, a leading cryptocurrency exchange. FRA will be responsible for monitoring Binance’s operations for the next three years, ensuring compliance with all regulatory requirements. The firm will have access to internal records, facilities, and staff to provide the DOJ with regular updates on the exchange’s activities.
The arrest of the Pepaire-Bueno brothers and the oversight of Binance by FRA are significant steps in combating financial crimes in the cryptocurrency industry, demonstrating the government’s commitment to safeguarding investors and maintaining the integrity of the market.