MIT-educated brothers accused of stealing $25 million in cryptocurrency in 12 seconds in Ethereum blockchain scheme (www.cbsnews.com)
from Wilshire@lemmy.world to technology@lemmy.world on 15 May 2024 21:10
https://lemmy.world/post/15443778

#technology

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autotldr@lemmings.world on 15 May 2024 21:10 next collapse

This is the best summary I could come up with:


Washington — A pair of brothers from New York and Boston were taken into federal custody Tuesday, accused by prosecutors of devising a novel criminal scheme to steal about $25 million in cryptocurrency from a commonly used blockchain, according to a newly unsealed indictment.

Investigators accused them of spending months plotting their theft within the Ethereum blockchain, baiting their victims and establishing shell companies to hide their illicit profits.

According to charging documents, the pair studied math and computer science “at one of the most prestigious universities in the country,” which prosecutors said afforded them a unique set of skills that allowed them to carry out the first-of-its-kind endeavor in a matter of seconds.

The brothers allegedly started laying the groundwork in December 2022, engaging in what investigators called a “baiting” operation that targeted three specific victim traders on the digital Ethereum platform.

Investigators said the defendants’ plot took months to plan but just 12 seconds to execute, allegedly raking in approximately $25 million from their unwitting victims.

They were arrested on Tuesday and are expected to make their initial appearances in New York and Boston federal courts on Wednesday.


The original article contains 396 words, the summary contains 190 words. Saved 52%. I’m a bot and I’m open source!

dukethorion@lemmy.world on 15 May 2024 21:27 next collapse

So, do we ban technical colleges now, and just let AI come up with new stuff?

AbidanYre@lemmy.world on 15 May 2024 21:45 next collapse

In doing so, they fraudulently gained access to pending private transactions and used that access to alter certain transactions and obtain their victims’ cryptocurrency,

I guess they never watched Office Space, or Superman III.

Edit: wrong Superman

db2@lemmy.world on 15 May 2024 21:48 next collapse

It was on the cover of that tps report.

Bonesince1997@lemmy.world on 15 May 2024 22:59 collapse

I feel like you’re jumping to conclusions

pete_the_cat@lemmy.world on 15 May 2024 23:05 collapse

…have you seen my stapler?

Entropywins@lemmy.world on 15 May 2024 23:48 collapse

and I kept the staples for the Swingline stapler and it’s not okay because if they take my stapler then I’ll set the building on fire…

restingboredface@sh.itjust.works on 15 May 2024 23:53 next collapse

They must have fucked up some mundane detail like misplacing a zero or something.

ImminentOrbit@lemmy.world on 15 May 2024 23:58 collapse

Superman III

AbidanYre@lemmy.world on 16 May 2024 00:56 collapse

Maybe I need to go rewatch it.

dhork@lemmy.world on 15 May 2024 22:21 next collapse

Found some more technical details here:

coindesk.com/…/brothers-accused-of-25m-ethereum-e…

solo@kbin.earth on 15 May 2024 23:20 collapse

The brothers created 16 Ethereum validators and targeted three specific traders who operated MEV bots, the indictment said.

To activate 1 validator you need 32 ETH.
So for the 16 validators they got, it would be 512 ETH. Prices in December 2022 for eth were around 1200$. So they "invested" in this fraud over 600,000$.

Today's eth price is around 3000$ so they'd be having over 1.5 mil, if they weren't that greedy

[deleted] on 15 May 2024 22:38 next collapse

.

sturlabragason@lemmy.world on 15 May 2024 22:41 next collapse

Yeah but who the fuck figured it out and how? Sounds to me like those fellows did their homework?

db0@lemmy.dbzer0.com on 16 May 2024 00:16 next collapse

I’m curious to see how the cops found out who’s they were to arrest them

GBU_28@lemm.ee on 16 May 2024 01:29 collapse

Bet they literally posted their deeds in discord or some shit

KairuByte@lemmy.dbzer0.com on 17 May 2024 03:40 next collapse

Yeah the first rule about something like this is to keep your damn mouth shut.

The second rule is to launder it slowly so it can’t be traced back to you.

[deleted] on 17 May 2024 03:40 collapse

.

xep@kbin.social on 16 May 2024 01:15 next collapse

But Code is Law! It's decentralized and trustless, I'm really disappointed with the victims for going to big government, with cryptocurrency there's no need for government, lawyers, or banks. The blockchain clearly already decided that the ETH belongs to the two brothers.

nulluser@programming.dev on 16 May 2024 02:40 collapse

ETH abandoned the trustless part. Now you’re supposed to trust the validators. Clearly, you can’t.

agressivelyPassive@feddit.de on 16 May 2024 04:33 collapse

It was never “trustless”, but trust in the system as a whole.

The change you mentioned is more a change of the definition of “system”, since now it’s effectively an oligarchy.

garretble@lemmy.world on 16 May 2024 01:30 next collapse

Crypto: “We don’t have or want government oversight.”

Also crypto: “Please, government, help us get back our made up money!”

agressivelyPassive@feddit.de on 16 May 2024 04:30 next collapse

Effectively they speed run something like 400 years of banking regulation and its history.

solo@kbin.earth on 16 May 2024 08:19 next collapse

And how on earth did you arrive to this arbitrary conclusion?

General_Effort@lemmy.world on 16 May 2024 11:11 collapse

I mean, yes, but I can’t help pointing out that all money is made up. The only difference is the purpose of the money system.

General_Effort@lemmy.world on 16 May 2024 11:16 next collapse

I wish people would go straight to the source for these stories. No reason to link to something that only paraphrases a press release and adds some ads.

Press release (contains link to indictment):

justice.gov/…/two-brothers-arrested-attacking-eth…

dukethorion@lemmy.world on 16 May 2024 18:54 collapse

How’s that secure Proof of Stake working out?