A 12-second fraudulent transaction netted them $25 million worth of cryptocurrency. Remember in 2023, two Massachusetts Institute of Technology (MIT) brothers — Anton Peraire-Bueno and James Peraire-Bueno — who allegedly stole $25 million in a crypto heist? Now, the US federal judge in Manhattan, Jessica Clarke, has declared a mistrial, or a trial that is not successfully completed, on the MIT brothers.
In April 2023, the exploit happened on Ethereum, and no one knew who was behind this unusual move that drained millions from multiple traders’ bots in a single block. After a month, crypto-security firms and investigators found out about the suspicious transactions that happened in just 12 seconds.
The US authorities looked into the case and finally arrested the alleged culprits in April 2024. They described the case: “first-of-its-kind fraud exploiting Ethereum’s integrity”.
When people use their brains to misuse technology
The MIT brothers used their deep skills to initiate multiple processes to steal the assets. They targeted MEV trading bots on Ethereum capable of generating small profits.
The highly skilled brothers did not exploit any smart contracts; instead, they focused on private data transactions between validators and relays (middlemen between validators and traders). They used their validator access and manipulated private data shared by a relay, letting them reap $25 million in 12 seconds — the typical time to create a new block on Ethereum.
A failed verdict
The jurors considering the case were unable to reach a final decision, and some of them have gone through sleepless nights. The jurors noted that they were not making any progress in the case, and hence the trial ended without a verdict.
For some of the jurors, this is an orchestrated scam, while others noted the act was not clearly illegal due to the complex blockchain technology.
Now, here is a question that some of us may ponder: there is clear evidence for this orchestrated scam, and it is neither accidental nor could not be. If legal bodies start loosening the grip on such exploits, it could open ways to more fraudulent activities in the blockchain industry.
According to reports, the MIT brothers’ crypto-related fraud case is not the only one that prosecutors found hard to resolve in 2025. There are other cases that ended in jury deadlock.
