An overview of the biggest scams in the crypto world

The Department of Justice (DOJ) announced the arrest of Anton and James Berer Bueno. These Massachusetts-based brothers allegedly stole $25 million from blockchain Ethereum (ETH) in just about 12 seconds.

They face charges of conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering. Each charge could result in 20 years in prison.

The complex scheme behind the theft of $25 million from Ethereum has been revealed

Anton and James leveraged the Ethereum transaction validation process in a new and complex way. Their system successfully manipulated Ethereum blockchain protocols to intercept and modify pending transactions. They achieve this thanks to their advanced knowledge of mathematics and computer science, developed at the prestigious Massachusetts Institute of Technology (MIT).

During the investigation, authorities discovered that the brothers had planned their theft over several months. They studied the victims' business patterns and hid their identities well.

Learn more: Because the risk increases during holiday periods How to detect scams?

Additionally, the brothers searched the Internet for advice on how to carry out their plan and avoid detection. They even sought legal advice on crypto crimes.

Authorities also discovered that she was using shell companies and multiple crypto addresses. After the heist, they laundered the stolen cryptocurrency through a complex network of transactions to hide the origin of the funds.

Despite their efforts, foreign law enforcement managed to freeze nearly $3 million of their winnings. However, Anton and James converted the remaining funds into DAI, a stable currency pegged to the US dollar, to further complicate recovery efforts.

In response to this case, U.S. Attorney Damian Williams shared his commitment to maintaining a safe environment in the crypto space.

The lawyer said Williams: “But as the indictment makes clear, no matter how sophisticated the fraud or how modern the techniques used to accomplish it, the career prosecutors in this office will relentlessly pursue people who attack the integrity of all financial systems."

Following the actions of the Berer-Bueno brothers, each must post a bond of $250,000 with two signatories before May 29. Additionally, they cannot trade cryptocurrencies, securities or commodities.

Cryptocurrency king arrested

In a related development, She threw The Ontario Securities Commission (OSC) in Canada has arrested Aiden Bleterski, the “self-proclaimed king of cryptocurrencies,” for fraud and money laundering. Pleterski allegedly embezzled millions from investors, spending them on luxury items instead of investing in digital assets as he promised.

During the crypto boom of 2021 and early 2022, Pleterski convinced investors to invest in his company, AP Private Equity Limited. He made 41.5 million Canadian dollars ($30.5 million).

At the time, he promised to invest the proceeds on behalf of investors in the cryptocurrency and foreign exchange markets. However, bankruptcy proceedings showed that he had only invested a small portion, with only C$3.15 million (US$2.31 million) recovered.

The court set his bail at 100,000 Canadian dollars, signed by his parents. He must also surrender his passport and refrain from posting about financial matters on social media. Eventually, he was banned from trading cryptocurrencies.

This high-profile case demonstrates how cryptocurrency attracts both legitimate investors and opportunistic scammers. However, the Department of Justice and other regulatory agencies are actively working to protect the public from these schemes.