New York: A federal court in Manhattan has declared a mistrial in the sensational case involving two brothers Anton Peraire-Bueno and James Peraire-Bueno both graduates of the Massachusetts Institute of Technology (MIT), who were accused of carrying out a highly technical $25 million cryptocurrency theft that reportedly took place in just 12 seconds. The decision came after jurors were unable to reach a unanimous verdict following days of deliberation.
According to federal prosecutors, the two brothers engineered one of the most sophisticated cryptocurrency thefts ever brought before a U.S. court. They allegedly exploited vulnerabilities in Ethereum’s “MEV-boost” protocol software that helps optimize blockchain transaction validations to deceive trading bots and seize millions in digital assets. Prosecutors described the alleged operation as a “bait-and-switch” scheme that combined deep computer science knowledge with rapid algorithmic execution, enabling the pair to drain $25 million in digital assets within seconds.
The U.S. Department of Justice charged the duo in May 2024, marking one of the first major criminal prosecutions of its kind, where advanced blockchain manipulation was treated under traditional wire fraud and money laundering statutes.
U.S. District Judge Jessica Clarke declared a mistrial after jurors informed the court that they could not agree on a verdict. The deadlock brought to an abrupt pause what many experts saw as a landmark case for defining the boundaries of legality in algorithmic crypto trading.
Legal analysts say the mistrial underscores the difficulties juries face when confronted with the complexity of blockchain systems, where ethical innovation and criminal manipulation often intersect. It also exposes the broader challenge for prosecutors translating intricate technological conduct into clear violations of existing law.
Defense attorneys for the Peraire-Bueno brothers maintained that their clients had not committed a crime. They argued that the brothers’ strategy operated within the open and competitive nature of blockchain markets, where speed, technical ingenuity, and opportunistic coding are common and lawful.
Their counsel described the case as a misunderstanding of how decentralized systems function, asserting that “the prosecution’s narrative confuses technological brilliance with wrongdoing.” The defense claimed the brothers were merely exploiting inefficiencies in the Ethereum network a practice, they said, widely known and accepted among blockchain developers and traders.
The case has become a touchstone for the evolving debate over how to regulate cryptocurrency markets. With no central authority governing blockchain networks, acts of exploitation are often difficult to classify legally. A mistrial in this case, experts note, could embolden developers and traders who operate in legal gray zones of blockchain systems.
Regulators are watching closely, as the outcome may influence how future crypto-related crimes are prosecuted. It may also prompt lawmakers to consider more specialized frameworks for digital asset offenses, especially those involving advanced coding and decentralized finance systems.
Following the mistrial, federal prosecutors will now decide whether to retry the case, seek a plea deal, or dismiss the charges. Legal observers expect the Justice Department to carefully evaluate whether another jury could reach a clearer verdict, given the highly technical evidence presented.
Meanwhile, the mistrial has sparked wider discussion in the cryptocurrency community about fairness, ethics, and innovation. For some, the case highlights the cutting edge of decentralized finance; for others, it exposes the urgent need for tighter global oversight.
Whatever the next step, the trial of the Peraire-Bueno brothers stands as a defining moment for the intersection of law, technology, and digital finance where the line between genius and illegality remains strikingly thin.