Security News > 2024 > May > Brothers arrested for $25 million theft in Ethereum blockchain attack
The U.S. Department of Justice has indicted two brothers for allegedly manipulating the Ethereum blockchain and stealing $25 million worth of cryptocurrency within approximately 12 seconds in a "First-of-its-kind" scheme.
"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. And once they put their plan into action, their heist only took 12 seconds to complete," said U.S. Attorney Damian Williams.
The two defendants allegedly manipulated transaction validation processes on the blockchain by accessing pending private transactions, altering them, obtaining victims' cryptocurrency, and rejecting requests to return the stolen funds-instead, they took steps to conceal their illegal gains.
The indictment claims the brothers learned their victims' trading behaviors while preparing the attack and took measures to hide their identities and the stolen proceeds.
Throughout the process, the brothers also searched online for information on carrying out the attack, concealing their involvement in the Ethereum exploit, laundering the criminal proceeds through cryptocurrency exchanges with lax verification procedures, hiring attorneys with cryptocurrency expertise, extradition procedures, and the crimes outlined in the indictment.
"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 IRS-CI special agent Thomas Fattorusso.