Two brothers educated at the Massachusetts Institute of Technology will stand trial after a federal judge refused to dismiss fraud charges against them in connection with a $25 million cryptocurrency heist from the Ethereum blockchain.
On Wednesday, US District Judge Jessica Clarke ruled that prosecutors had sufficiently alleged that Anton and James Peraire-Bueno’s actions met the legal definition of fraud, despite their arguments that the scheme relied on publicly available code.
The pair were charged in May 2024 for what authorities described as a sophisticated exploit targeting maximal extractable value (MEV) bots on Ethereum. Prosecutors allege the brothers used their advanced computer science skills to manipulate automated trading bots by luring them into specific transactions and then interfering with the blockchain’s validation process to siphon funds.
According to the indictment, the operation was executed in just 12 seconds and relied on a four-step strategy they developed, known internally as “bait, block, search, and propagation.” To carry out the exploit, the brothers allegedly created 16 Ethereum validators, staking 529.5 ETH, and deployed “lure transactions” designed to attract MEV bots.
In their motion to dismiss, the Peraire-Bueno brothers argued that their conduct was not criminal because it was technically allowed under the blockchain’s code, and they accused prosecutors of unfairly targeting them while their victims’ bots engaged in manipulative trading themselves.
Earlier in the case, prosecutors dropped a conspiracy to receive stolen property charge after the defence cited a Department of Justice memo warning against regulatory overreach in digital asset prosecutions.
The brothers still face charges of wire fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering – crimes that carry severe penalties if convicted. Their trial is expected to begin in October 2025, though a firm date has not yet been confirmed as pre-trial motions continue.
Notably, Bitget Wallet has enhanced its security measures by integrating Maximal Extractable Value (MEV) protection across multiple blockchains, activating the feature by default to shield users from exploitative trading practices.
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