"In the opening phase of the trial which kicked off this week, prosecutors described the heist as a "enormous bait-and-switch" using automatic trading bots to snare other bots into a fraudulent transaction. In essence, the government alleges, the brothers exploited a software flaw to sucker crypto bots into dumping millions into their fraudulent currency. "In 12 seconds, the defendants tricked their victims out of $25 million," Federal Assistant Attorney Ryan Nees told jurors."
"Before pulling off the scheme, BI reports, the duo made sure to cover their bases on Google, where they searched "how to wash crypto," "top crypto lawyers," "fraudulent Ethereum addresses database," and - just for good measure - "money laundering statue [sic] of limitations." The pair were arrested earlier in May, after a two year federal investigation revealed a months-long plot to manipulate protocols used to validate transactions on the Ethereum blockchain, a cryptocurrency second only to Bitcoin by total market cap."
Two brothers, Anton and James Peraire-Bueno, are accused of orchestrating a months-long scheme that exploited a software flaw in Ethereum transaction validation protocols. Prosecutors allege the duo used automatic trading bots to trick other bots into dumping millions into a fraudulent currency, accomplishing the theft in roughly 12 seconds and netting about $25 million. Federal charges include conspiracy, wire fraud, and money laundering. Investigators found online searches showing steps to conceal proceeds and seek legal counsel. The pair were arrested after a two-year federal investigation, while defense attorneys contend actions occurred in an unregulated market.
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