Tag Archives: consultations

Insider Testifies MIT Brothers Allegedly Planned $25M Crypto Heist for Months

Travis Chen, a quantitative trader who worked for the brothers’ company, testified in Manhattan federal court about a December 2022 meeting where the brothers outlined an alleged scheme to exploit a software vulnerability in Ethereum’s MEV-Boost protocol.

Chen, a former employee of Anton and James Peraire-Bueno’s firm 18decimal, described the operation, code-named “Omakase,” which was designed to profit at the expense of sandwich bots — automated trading programs that capitalize on price movements by inserting their own transactions before and after a pending trade, effectively “sandwiching” it to generate profit from the resulting price slippage. In this case, the brothers reportedly planned to use the bots’ own tactics against them.

During the trial, Chen testified under a nonprosecution agreement that required him to forfeit $2.4 million — his share of the alleged heist. Notes from the December 2022 planning meeting revealed that the brothers anticipated making $6 million from the operation, with potential to earn “way higher” amounts if they could “trap them all at once.”

According to prosecutors, the MIT-educated brothers spent months analyzing trading patterns and designed eight “bait” transactions to attract sandwich bots. Once the bots engaged, they allegedly exploited a vulnerability allowing them to drain the bots’ funds by restructuring blocks to their advantage.

The scheme was reportedly executed by April 2, 2023, netting approximately $25 million in just 12 seconds. The brothers face wire fraud and money laundering conspiracy charges, each carrying up to 20 years in prison. They went on trial last Tuesday after rejecting a plea deal.

Further testimony revealed that the brothers, as validators on Ethereum’s blockchain, exploited a glitch that allowed early access to transaction data before block finalization. Prosecutors also allege the brothers searched online for phrases such as “how to wash crypto” and “top crypto lawyers” during their planning, though the defense has sought to exclude this evidence, arguing the searches took place during privileged communications with attorneys.

Flashbots developer Robert Miller also testified that the vulnerability was fixed within 24 hours of the exploit. He stated that the alleged perpetrators later contacted him anonymously, asking him not to refer to their activity as an “exploit” in exchange for details of a similar strategy. Miller said he accepted the proposal, though the defense had objected to his testimony earlier, claiming it would be based on his expertise rather than direct investigation.

The trial continues as the court examines the full scope of the brothers’ actions and intentions in this unprecedented crypto trading heist.
https://decrypt.co/344933/insider-testifies-mit-brothers-allegedly-planned-25m-crypto-heist

Israel strikes Gaza after it says Hamas attacked across ceasefire line

**Israel Strikes Targets in Gaza Amid First Test of U.S.-Brokered Ceasefire**

*TEL AVIV, Israel* — Israel struck targets in the southern Gaza Strip on Sunday after reporting that its troops came under fire from Hamas militants. This marked the first major test of a U.S.-brokered ceasefire aimed at halting more than two years of war.

According to the Israeli military, members of the Palestinian group used an RPG against Israeli forces, prompting airstrikes and artillery responses. Prime Minister Benjamin Netanyahu held consultations with security officials and directed the military to take “strong action” against any ceasefire violations. However, he did not threaten to escalate back to full war.

Hamas denied involvement in the clashes in Rafah, located in southern Gaza.

### Hostage Remains Identified as Ceasefire Talks Advance

The strikes coincided with Israel identifying the remains of two hostages released by Hamas overnight. The Palestinian group also announced the initiation of talks to launch the second phase of ceasefire negotiations.

Prime Minister Netanyahu’s office confirmed the bodies were those of Ronen Engel, a father of three from Kibbutz Nir Oz, and Sonthaya Oakkharasri, a Thai agricultural worker killed at Kibbutz Be’eri. Both had been believed killed during the Hamas-led attack on southern Israel on October 7, 2023, and their bodies were taken to Gaza.

Notably, Engel’s wife, Karina, and two of their three children were kidnapped during the attack but released in a November 2023 ceasefire agreement.

### Rafah Border Crossing Remains Closed Amid Hostage Remains Dispute

Israel announced it would keep the Rafah border crossing between Gaza and Egypt closed “until further notice.” Netanyahu’s office stated that reopening Rafah hinges on Hamas fulfilling its ceasefire obligations, including returning the remains of all 28 deceased hostages.

In the past week, Hamas has handed over the remains of 13 bodies, 12 identified as hostages. Israel noted one released body did not belong to a hostage.

Meanwhile, Israel has returned 150 Palestinian bodies to Gaza, including 15 on Sunday, according to the Hamas-run Gaza Health Ministry. The ministry posted photos of dozens of bodies online to assist families searching for loved ones. Many of the bodies were decomposed, blackened, and some lacked limbs and teeth. Only 25 have been identified so far.

### Ongoing Negotiations and Ceasefire Challenges

Following an exchange involving 20 living hostages for more than 1,900 Palestinian prisoners and detainees, the handover of deceased hostages’ remains and prisoners remains a critical issue in the ceasefire’s first stage.

Another key issue involves scaling up humanitarian aid and reopening the Rafah border crossing to facilitate aid delivery and the movement of people.

Future ceasefire stages will focus on disarming Hamas, Israeli withdrawal from additional Gaza areas, and the establishment of governance for the devastated territory.

### Ceasefire Clashes in Rafah

On Sunday, the Israeli military reported militants fired at troops in Rafah, within Israeli-controlled areas as per the ceasefire lines. No injuries were reported.

Hamas denied involvement. Both sides have accused each other of ceasefire violations amid ongoing tensions.

Hamas spokesman Hazem Kassem said that negotiations for the second phase have begun but require national consensus. He added that Hamas has started discussions to solidify its positions but offered no further details.

In line with U.S. President Donald Trump’s plan, future talks will include disarming Hamas and establishing an internationally backed authority to govern Gaza. Kassem emphasized Hamas will not participate in the future ruling authority.

He noted that Hamas-run government bodies continue day-to-day governance to avoid a power vacuum, which he described as “very dangerous.” Kassem called for establishing a Community Support Committee composed of Palestinian technocrats to manage affairs until an administrative committee representing all factions is formed.

### Status of Rafah Border Crossing

Israel again kept the Rafah crossing closed on Sunday to pressure Hamas for the return of more hostages’ bodies. While Hamas claims it needs special equipment to locate additional remains, Israel believes Hamas has access to more bodies than it has returned.

Before the war, Rafah was the only crossing not controlled by Israel. It has remained closed since May 2024, when Israel took control of the Gaza side.

Reopening the crossing fully would allow Palestinians access to medical treatment, travel, and visits to family in Egypt, where tens of thousands of Palestinians reside.

The Palestinian Authority’s Interior Ministry in Ramallah announced new procedures for Palestinians wishing to use the crossing. Palestinian Embassy staff from Cairo will issue temporary travel documents for those exiting Gaza. Those entering Gaza must apply at the embassy in Cairo for entry documents.

### Casualty Figures and Conflict Overview

The Israel-Hamas war has reportedly killed more than 68,000 Palestinians, according to the Hamas-run Gaza Health Ministry. U.N. agencies and independent experts view these figures as reliable; however, Israel disputes the numbers and has not provided its own toll.

Thousands more remain missing, the Red Cross reports.

Hamas militants killed around 1,200 people, mostly civilians, and abducted 251 during the October 7 attack that ignited the war.

### Hamas Rejects U.S. Claims of Planned Attack

On Sunday, Hamas rejected a U.S. State Department claim alleging credible reports of an imminent planned Hamas attack on Gaza residents.

The U.S. statement warned such an attack would violate the ceasefire and undermine mediation progress.

Hamas called the claim “false allegations,” accused Israel of supporting armed groups in Israeli-controlled areas, and urged the U.S. to pressure Israel to halt such support.

Fighting has erupted between Hamas-led fighters and at least two armed groups in eastern Gaza City accused of looting aid and collaborating with Israel. Hamas has publicly executed several suspects, drawing widespread condemnation.

The Hamas-run Interior Ministry said its forces are working to restore law and order in areas vacated by Israel following the ceasefire.

*This report will be updated as the situation develops.*
https://abc7.com/post/israel-strikes-gaza-says-hamas-attacked-ceasefire-line/18038173/