The US Department of Justice charges two brothers with stealing $25 million worth of cryptoin about 12 seconds!
Anton Peraire-Bueno and James Pepaire-Bueno were arrested in Boston and New York on charges of wire fraud and conspiracy to commit wire fraud and money laundering. If convicted, each faces a maximum sentence of 20 years in prison on each charge.
“The brothers, who studied computer science and mathematics at one of the world’s most prestigious universities, allegedly used their specialized skills and education to hack and manipulate the protocols that millions of users around the world. Their plan was put into action, and the robbery took only 12 seconds to complete,” said U.S. Attorney Damian Williams.
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It is said that the two brothers interfered with the transaction validation processes on the blockchain (e.g. accessing private transactions, acquiring victims , etc.) and ultimately proceeded to steal $25 million worth of crypto.
According to the charges, the two brothers learned about their victims' trading behaviors in preparation for the attack, which appears to have begun in December 2022. They then took care to conceal their identities and the stolen proceeds.
They used multiple crypto addresses and foreign exchanges and set up shell companies. After the attack, they moved the stolen crypto through a series of transactions to avoid detection.
In planning and executing the attack, they reportedly took several measures. One of these was the creation of a series of Ethereum validators in a way that concealed identities through the use of shell, intermediary cryptocurrency addresses, foreign exchanges, and a privacy layer network.
They also exploited a vulnerability in the MEV-Boost relay code and took various other actions.
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Throughout the process, the brothers also searched the Internet for information about carrying out the attack, concealing their involvement in the fraud, laundering illicit proceeds, finding lawyers with expertise in crypto, extradition procedures, and more.
“These brothers allegedly committed a first-of-its-kind manipulation of the Ethereum blockchain, fraudulently gaining access to pending transactions, altering the movement of the electronic currency, and ultimately stealing $25 million in crypto from their victims,” said Special Agent Thomas Fattorusso.
Latest technologies for protecting digital assets
One of the latest technologies for protecting digital assets is the use of Hardware Wallets. These devices store private keys offline, making them inaccessible to hackers trying to gain access over the internet.
Multi-Signature (Multi-Sig) technology is another important tool for protecting crypto. This technology requires the approval of multiple parties to complete a transaction, thereby reducing the risk of losing funds in the event that an account is compromised. Multi-Sig can be used by both individual users and organizations to enhance the security of their funds.
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Using Cold Wallets is another strategy for protecting digital assets. Cold Wallets are wallets that are not connected to the internet, making them inaccessible to hackers. Storing crypto in Cold Wallets significantly reduces the risk of theft through cyberattacks.
Two-Factor Authentication (2FA) technology is also important. 2FA adds an extra layer of security by requiring users to provide two forms of identification before gaining access to their accounts. This can include a password and a unique code sent to the user’s mobile phone . 2FA makes it much more difficult for hackers to gain access to accounts, even if they have stolen the password.
The use of Decentralized Exchanges (DEX) is another method for protecting digital assets. Unlike centralized exchange platforms, DEXs allow users to maintain control of their private keys during transactions. This reduces the risk of theft that centralized platforms, as users do not have to deposit their funds with a centralized entity.
Source: www.bleepingcomputer.com
