Crypto Mining News Daily

Saturday, May 18, 2024
HomeSecurityEthereum Hackers Nabbed: Brothers Arrested for Stealing $25M in Cryptocurrency

Ethereum Hackers Nabbed: Brothers Arrested for Stealing $25M in Cryptocurrency

-

The MEV-Boost Exploit: How Two Brothers Stole $25M in 12 Seconds

In a groundbreaking criminal action, the U.S. Department of Justice has arrested two brothers, Anton Peraire-Bueno and James Pepaire-Bueno, for stealing $25 million in cryptocurrency during a 12-second exploit. The brothers allegedly exploited a bug in MEV-boost, a software used by most Ethereum validators, to preview upcoming transactions and steal funds.

What is MEV-Boost?

MEV-boost is a software that assembles transactions into official blocks for the Ethereum blockchain. It allows “block builders” to assemble transactions and “searchers” to scour the mempool for profitable trading opportunities. The exploit targeted MEV bots, which “bribe” builders to insert or re-order transactions for an extra profit.

The Exploit

The Pepaire-Bueno brothers created 16 Ethereum validators and targeted three specific traders who operated MEV bots. They used bait transactions to figure out how the bots traded, lured the bots to one of their validators, and tricked them into proposing certain transactions. The brothers allegedly frontran the bots on certain trades and used their validator to tamper with the new block, giving them access to the block’s full contents.

The Heist

The brothers allegedly sold illiquid cryptocurrencies they had tricked the victims’ trading bots into placing buy orders for. This drained the liquidity pools of the cryptocurrencies, rendering them worthless. The defendants then allegedly laundered the funds through various addresses and sets of transactions, converting the stolen funds into DAI and USDC.

The Takeaway

The indictment highlights the vulnerability of the Ethereum blockchain and the need for increased security measures. The U.S. Attorney for the Southern District of New York, Damian Williams, stated, “The defendants’ scheme calls the very integrity of the blockchain into question.”

TL;DR:

Two brothers, Anton Peraire-Bueno and James Pepaire-Bueno, have been arrested for stealing $25 million in cryptocurrency during a 12-second exploit. The brothers allegedly exploited a bug in MEV-boost, a software used by most Ethereum validators, to preview upcoming transactions and steal funds. The indictment highlights the vulnerability of the Ethereum blockchain and the need for increased security measures.

Source: Coindesk

LATEST POSTS

Most Popular

Learn How to Mine Crypto

Join our mailing list and receive a free copy of Crypto Mining 101, our detailed guide on how crypto mining works, must have tools to get started, and how to be successful.

Note: We’ll never sell, trade, or abuse your information, and it’s simple to opt out! Read our Privacy Policy here.