Crypto: “We don’t have or want government oversight.”
Also crypto: “Please, government, help us get back our made up money!”
this post was submitted on 15 May 2024
232 points (97.9% liked)
Technology
59434 readers
3487 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
Effectively they speed run something like 400 years of banking regulation and its history.
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.
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.
ETH abandoned the trustless part. Now you're supposed to trust the validators. Clearly, you can't.
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.
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
It was on the cover of that tps report.
I feel like you're jumping to conclusions
...have you seen my stapler?
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...
Superman III
Maybe I need to go rewatch it.
They must have fucked up some mundane detail like misplacing a zero or something.
Found some more technical details here:
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
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):
Yeah but who the fuck figured it out and how? Sounds to me like those fellows did their homework?
I'm curious to see how the cops found out who's they were to arrest them
Bet they literally posted their deeds in discord or some shit
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.
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!
How's that secure Proof of Stake working out?