MIT-educated brothers acquitted as judge declares mistrial in $25 million Ethereum theft case
Two MIT-educated brothers were at the heart of a $25 million (£18 million) cryptocurrency controversy that dominated the digital landscape. Despite being accused of orchestrating a lightning-fast, calculated digital heist on the Ethereum blockchain, the case ultimately ended in a mistrial. James and Anton Peraire-Bueno were the central figures in a case that captivated the public and sparked conversations about the thin line between genius and fraud in the digital finance realm.
The trial lasted four grueling weeks, pushing both the jury and the defendants to their limits. Sleepless nights and emotional breakdowns in the jury room characterized the intense deliberation process. After failing to reach a unanimous decision on the third day of deliberations, the jurors sent a desperate note to the judge, expressing their exhaustion and inability to make progress. This resulted in US District Judge Jessica Clarke declaring a mistrial.
The prosecuting team had charged the brothers with wire fraud, conspiracy to commit wire fraud, and money laundering. Each charge carried the weight of a potential 20-year prison sentence. To secure a conviction, jurors needed to be convinced that the brothers deliberately misled others to obtain money through false representations. The prosecutors alleged that a complex 12-second Ethereum transaction in 2023, masterminded by the brothers, swindled three traders out of $25 million (£18 million) by tampering with block transactions.
Defense attorney Daniel Nathan Marx argued that the brothers’ automated trading bots were simply leveraging a high-risk market to achieve success. These bots allegedly used a controversial trading strategy, known as “sandwich attacks,” to outmaneuver other traders before and after transactions. Despite these assertions, the mistrial represented the federal prosecutors’ third failed attempt in 2025 to secure a conviction in significant digital-asset fraud cases.
The case raised pertinent questions about the risks associated with an unregulated financial system. The mistrial involving the Peraire-Bueno brothers underscores the challenges of prosecuting intricate cryptocurrency fraud cases. While the prosecution depicted the brothers’ actions as deceitful, the defense maintained that they were operating within the boundaries of an unregulated financial climate.
This mistrial followed similar outcomes in high-profile digital fraud and money-laundering cases earlier in the year. These legal battles highlight the complexities of prosecuting financial crimes in the digital age. As for the Peraire-Bueno brothers, the mistrial has polarized the cryptocurrency community, with some viewing their actions as fraudulent, while others see them as strategic and legitimate.
