Mistrial Declared in $25 Million Crypto Heist Case Against MIT-Educated Brothers
A federal judge has declared a mistrial in the high-profile case against two MIT-educated brothers accused of orchestrating a sophisticated $25 million cryptocurrency heist that exploited the Ethereum blockchain.
Key Takeaways
- MIT-educated brothers Anton and James Peraire-Bueno faced wire fraud and money laundering charges
- Jury failed to reach verdict after deliberating on the novel crypto scheme
- Prosecutors alleged the brothers stole $25 million in just 12 seconds
- Defense argued the trading strategy was legitimate and innovative
Case Details and Legal Proceedings
U.S. District Judge Jessica Clarke in Manhattan declared the mistrial after jurors were unable to reach a unanimous decision on whether to convict or acquit the Peraire-Bueno brothers. The case centered on what prosecutors described as a “first-of-its-kind” wire fraud and money laundering scheme.
William Fick, a lawyer for Anton Peraire-Bueno, confirmed the mistrial outcome. The Manhattan U.S. Attorney’s office did not immediately respond to requests for comment.
The Alleged Crypto Exploit
Prosecutors alleged the brothers used their MIT computer science education to develop a sophisticated trading strategy that manipulated Ethereum blockchain protocols. According to Assistant U.S. Attorney Ryan Nees, the scheme involved a “high-speed bait-and-switch” designed to trap trading bots and drain other traders’ accounts.
The prosecution claimed the brothers exploited a vulnerability in MEV-boost software, which is used by most Ethereum network validators to check transaction validity before adding them to the blockchain.
“Then they planted a trade that looked like one thing from the outside, but was secretly something else,” Nees told jurors. “Then, just as the defendants planned, the victims took the bait.”
Defense Position
Katherine Trefz, representing James Peraire-Bueno, argued that the trading strategy was not only novel but legitimate. She maintained the approach was “consistent with the principles at play in this very competitive trading environment.”
The brothers were indicted in May 2024, and despite shifting regulatory approaches to cryptocurrency enforcement, their case proceeded to trial.
(Reporting by Nate Raymond in Boston; editing by Diane Craft)
