An indictment unsealed today charges two American brothers, Anton Peraire-Bueno, 24, of Boston, and James Peraire-Bueno, 28, of New York, with conspiracy to commit wire fraud, and conspiracy to commit money laundering. The charges stem from an alleged scheme by the brothers to fraudulently obtain approximately $25 million worth of cryptocurrency by exploiting the Ethereum blockchain.
The Peraire-Bueno brothers were arrested yesterday in Boston and New York and are set to appear before U.S. Magistrate Judge Paul G. Levenson in the District of Massachusetts and U.S. Magistrate Judge Valerie Figueredo in the Southern District of New York this afternoon.
“As alleged in the indictment, the Peraire-Bueno brothers orchestrated a sophisticated scheme to steal $25 million in Ethereum cryptocurrency in just 12 seconds,” said Deputy Attorney General Lisa Monaco. “Despite the complexity of their crimes, IRS agents and our prosecutors were able to uncover this unprecedented money laundering scheme and wire fraud. The Department of Justice remains committed to rooting out fraud and restoring confidence in the cryptocurrency markets.”
U.S. Attorney Damian Williams for the Southern District of New York added, “Our office has indicted Anton and James Peraire-Bueno for exploiting the Ethereum blockchain and stealing $25 million in cryptocurrency. Their actions challenge the integrity of the blockchain, and their scheme, executed in seconds, demonstrates their advanced technical skills and education. However, regardless of the sophistication of the fraud, we will relentlessly pursue those who undermine financial systems.”
According to Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office, “These brothers allegedly manipulated the Ethereum blockchain to steal $25 million in cryptocurrency. IRS-CI New York’s Cyber Unit followed the money trail, combining advanced technology with traditional investigative techniques to uncover this complex fraud.”
The indictment alleges that Anton and James Peraire-Bueno, who studied mathematics and computer science at a prestigious university, used their expertise in cryptocurrency trading to execute the fraud. They manipulated the Ethereum blockchain to gain access to pending private transactions, altering them to steal cryptocurrency. They then took extensive measures to hide their identities and the stolen funds, including setting up shell companies and using multiple private cryptocurrency addresses and foreign exchanges.
After the theft, the brothers laundered the cryptocurrency through a series of transactions to conceal its origins. They also conducted online research on how to execute the scheme, conceal their involvement, and avoid detection.
If convicted, Anton and James Peraire-Bueno each face up to 20 years in prison for each count. The investigation was led by IRS-CI New York’s Cyber Investigations Unit, with assistance from the New York City Police Department and U.S. Customs and Border Protection. Assistant U.S. Attorneys Rushmi Bhaskaran and Danielle Kudla are prosecuting the case.
However it is important to note that, an indictment is only an allegation, and all defendants are presumed innocent until they are proven to be guilty beyond a reasonable doubt in a court of law.
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