Jury Fails to Reach Consensus in High-Stakes Ethereum Exploitation Case
In a dramatic turn at Manhattan’s federal court, Judge Jessica G. L. Clarke declared a mistrial after jurors failed to reach a verdict in the trial of Anton and James Peraire-Bueno, two MIT-educated brothers accused of stealing $25 million in cryptocurrency. Jurors reported exhaustion, sleepless nights, and emotional strain after days of deadlock.
Prosecutors claimed the brothers carried out a “first-of-its-kind” scheme in April 2023, exploiting Ethereum’s MEV-boost software — a tool used to verify blockchain transactions. By inserting false control data, they allegedly manipulated the system to reroute trades, siphoning millions in just twelve seconds.
The defense, however, insisted the brothers’ actions were lawful, arguing they merely leveraged speed and innovation in an intensely competitive trading environment. Their attorneys described the incident as aggressive but legitimate algorithmic trading, not fraud.
How the Alleged Heist Unfolded
Prosecutors said the Peraire-Bueno brothers spent months preparing an intricate strategy designed to deceive automated trading bots. They allegedly “poisoned” a proposed transaction block, triggering other bots to process it before slipping in their own rapid transaction — draining funds from victims’ accounts almost instantly.
According to the defense, there was no deceit, only technological ingenuity. They argued the blockchain operates under open and competitive principles where participants accept inherent risks from faster algorithms.
A Setback for Crypto Regulation
This mistrial marks the third time in 2025 that a major U.S. crypto-fraud case ended without a conviction. The case was closely watched by regulators hoping to show that blockchain innovation does not exempt participants from traditional financial laws.
Legal analysts believe retrying the brothers could prove difficult unless prosecutors simplify the complex blockchain mechanisms into terms a jury can grasp. The case underscores the ongoing struggle between fast-moving crypto technology and slow-evolving legal frameworks — a friction that continues to challenge regulators and industry players alike.
