US Department of Justice charges brothers for alleged 12-second MEV fraud

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US Department of Justice charges brothers for alleged 12-second MEV fraud
Ethereum
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The Department of Justice (DOJ) announced on Wednesday that Anton and James Peraire-Bueno were arrested for an alleged maximum extractable value (MEV) exploit that saw them obtain $25 million.

Anton and James Peraire-Bueno were arrested after several indictments, including wire fraud. The two brothers allegedly exploited Ethereum 's MEV to obtain $25 million worth of ill-gotten funds within 12 seconds. This is the first time the Justice Department has charged individuals for such a scheme. The Department of Justice announced on Wednesday that Anton and James Peraire-Bueno were arrested for an alleged maximum extractable value exploit that saw them obtain $25 million.

Anton and James used a series of bait transactions to trick MEV bots in a scheme that saw them gaining access to the full content of a proposed block. The brothers then reordered transactions within the block to their advantage before they were published on the Ethereum blockchain. This 12-second action resulted in a theft of $25 million from victim traders, claimed the DOJ.

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