MIT Students Stole $25 Million In Seconds By Exploiting ETH Blockchain Bug, DOJ Says

An anonymous reader quotes a report from Ars Technica: Within approximately 12 seconds, two highly educated brothers allegedly stole $25 million by tampering with the ethereum blockchain in a never-before-seen cryptocurrency scheme, according to an indictment that the US Department of Justice unsealed Wednesday. In a DOJ press release, US Attorney Damian Williams said the scheme was so sophisticated that it "calls the very integrity of the blockchain into question." "The brothers, 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," Williams said. "And once they put their plan into action, their heist only took 12 seconds to complete." Anton, 24, and James Peraire-Bueno, 28, were arrested Tuesday, charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Each brother faces "a maximum penalty of 20 years in prison for each count," the DOJ said. The indictment goes into detail explaining that the scheme allegedly worked by exploiting the ethereum blockchain in the moments after a transaction was conducted but before the transaction was added to the blockchain. To uncover the scheme, the special agent in charge, Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office, said that investigators "simply followed the money." "Regardless of the complexity of the case, we continue to lead the effort in financial criminal investigations with cutting-edge technology and good-ol'-fashioned investigative work, on and off the blockchain," Fattorusso said.

Read more of this story at Slashdot.