Ethereum blockchain lost $ 25 million in 12 seconds due to manipulation of validation

The trial of two brothers, graduates of the Massachusetts Institute of Technology, accused of stealing $ 25 million in Ethereum, has begun in New York ETH $4,059.07 Bridged Ether (StarkGate) -1.58% Market capitalization $98.59 million VOL. 24 hours $2.25 billion . Prosecutors claim that their scheme «calls into question the very integrity of the blockchain.»

According to the prosecution, Anton (25) and James Peraire-Bueno (29) «manipulated transaction validation protocols» in the Ethereum network to illegally access the digital assets of other users. According to the prosecution, the brothers used their computer science and mathematics degrees from MIT «to interfere with a process relied upon by millions of users around the world.» The entire «robbery» lasted only 12 seconds.

The two have been charged with conspiracy to commit fraud, wire fraud, and money laundering. Each of these charges carries a maximum sentence of 20 years in prison. The trial in the Federal District of Manhattan could last until early November.

The defense insists that the brothers' actions were not a crime, but merely the use of Ethereum protocol features that are not prohibited by law. The lawyers even filed a motion to prohibit the prosecutor’s office from using the history of Google searches as evidence, calling it a «biased and unethical approach.»

Prosecutors claim that the operation was «carefully planned» and included «numerous steps to disguise the identities of the defendants and conceal the stolen funds.» It is not yet known whether the Peraire-Bueno brothers will testify. If found guilty, they could spend several decades in prison, making this one of the most high-profile cryptocurrency cases in recent years.