The charges show that prosecutors have learned how to make sense of extremely complex blockchain attacks.
A little over a year ago, traders on Ethereum using bots to make arbitrage trades were tricked into giving up $25 million in crypto assets to a very sophisticated exploit of
The alleged scheme utilized a system called maximal extractable value , in which arbitrage traders help blockchain validators compose blocks, and in doing so, shave little bits of profit off the impact of large trades on prices. The attackers allegedly spun up their own blockchain validators so they could pull bait-and-switches on these bots.Federal prosecutors Wednesday announced the indictments of Anton and James Peraire-Bueno, brothers trained in mathematics with advanced abilities in crypto trading.According to the indictment, following the trade the brothers looked for a bank safe deposit box that could hold a laptop and performed searches about the statute of limitations for wire fraud.
"No matter how sophisticated the fraud or how new the techniques used to accomplish it, the career prosecutors of this Office will be relentless in pursuing people who attack the integrity of all financial systems."Share on linkedin
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