After 18 tense days in a Manhattan federal courtroom, the high-profile U.S. v. Peraire-Bueno trial has ended in a mistrial. Judge Jessica G.L. Clarke declared the outcome late Friday, citing a deadlocked jury unable to reach a unanimous verdict on charges of wire fraud and money laundering. Challenges seen in the case are to some extent similar to what happened between the Department of Justice and Tornado Cash. $25 Million Trial Tests Whether Code Can Be a Crime The case centered on two MIT-educated brothers, Benjamin and Noah Peraire-Bueno, accused of orchestrating an exploit on Ethereum’s Maximal Extractable Value (MEV) system. Ethereum MEV is a core mechanism that determines how transactions are ordered in blocks. Prosecutors alleged the pair executed so-called “sandwich attacks”, manipulating transaction sequencing to siphon roughly $25 million from other traders. Matthew Russell Lee of the Inner-City Press described the case as one of the most technically complex crypto cases to date, testing the boundaries between algorithmic opportunism and criminal intent. Reportedly, defense attorneys argued that the brothers leveraged public blockchain code, conduct they claimed was “within the rules of the system.” Prosecutors, however, painted the scheme as a calculated digital heist disguised as clever coding. The mistrial was declared after three days of jury deliberations. Throughout the trial, jurors struggled to understand how to interpret mens rea, or criminal intent, in the context of decentralized finance (DeFi). Code vs. Intent — The Legal Grey Area Exposed by the Mistrial According to courtroom transcripts shared by Lee, defense lawyer Looby argued that “the government didn’t want this description of intent in there,” emphasizing that the accused believed they were acting within the technical framework of Ethereum rather than committing a traditional fraud. The prosecution countered that the defendants acted with “wrongful purpose,” exploiting a system designed for transparency to deceive and enrich themselves. Judge Clarke noted that under existing statutes, “there is no requirement that the defendants knew their actions were illegal.” The mistrial now leaves both regulators and developers with a difficult precedent, or lack thereof. The Peraire-Bueno case could have set a landmark judgment on whether code-based exploits in decentralized networks can be prosecuted under conventional fraud laws. Instead, it ends with ambiguity. The Department of Justice has not yet announced whether it will seek a retrial. DeFi advocates could call the outcome a victory for open systems and innovation. To some extent, this case mirrors the challenges seen with the Tornado Cash case. As the case centered on decentralization, it sparked debate on regulating blockchain tied to criminal misuse. As it initially happened, a US federal appeals court struck down sanctions imposed by the Treasury Department on Tornado Cash. After 18 tense days in a Manhattan federal courtroom, the high-profile U.S. v. Peraire-Bueno trial has ended in a mistrial. Judge Jessica G.L. Clarke declared the outcome late Friday, citing a deadlocked jury unable to reach a unanimous verdict on charges of wire fraud and money laundering. Challenges seen in the case are to some extent similar to what happened between the Department of Justice and Tornado Cash. $25 Million Trial Tests Whether Code Can Be a Crime The case centered on two MIT-educated brothers, Benjamin and Noah Peraire-Bueno, accused of orchestrating an exploit on Ethereum’s Maximal Extractable Value (MEV) system. Ethereum MEV is a core mechanism that determines how transactions are ordered in blocks. Prosecutors alleged the pair executed so-called “sandwich attacks”, manipulating transaction sequencing to siphon roughly $25 million from other traders. Matthew Russell Lee of the Inner-City Press described the case as one of the most technically complex crypto cases to date, testing the boundaries between algorithmic opportunism and criminal intent. Reportedly, defense attorneys argued that the brothers leveraged public blockchain code, conduct they claimed was “within the rules of the system.” Prosecutors, however, painted the scheme as a calculated digital heist disguised as clever coding. The mistrial was declared after three days of jury deliberations. Throughout the trial, jurors struggled to understand how to interpret mens rea, or criminal intent, in the context of decentralized finance (DeFi). Code vs. Intent — The Legal Grey Area Exposed by the Mistrial According to courtroom transcripts shared by Lee, defense lawyer Looby argued that “the government didn’t want this description of intent in there,” emphasizing that the accused believed they were acting within the technical framework of Ethereum rather than committing a traditional fraud. The prosecution countered that the defendants acted with “wrongful purpose,” exploiting a system designed for transparency to deceive and enrich themselves. Judge Clarke noted that under existing statutes, “there is no requirement that the defendants knew their actions were illegal.” The mistrial now leaves both regulators and developers with a difficult precedent, or lack thereof. The Peraire-Bueno case could have set a landmark judgment on whether code-based exploits in decentralized networks can be prosecuted under conventional fraud laws. Instead, it ends with ambiguity. The Department of Justice has not yet announced whether it will seek a retrial. DeFi advocates could call the outcome a victory for open systems and innovation. To some extent, this case mirrors the challenges seen with the Tornado Cash case. As the case centered on decentralization, it sparked debate on regulating blockchain tied to criminal misuse. As it initially happened, a US federal appeals court struck down sanctions imposed by the Treasury Department on Tornado Cash. 

Mistrial in $25 Million Ethereum ‘Sandwich Bot’ Case Puts Code and Value on Trial

2025/11/08 09:28

After 18 tense days in a Manhattan federal courtroom, the high-profile U.S. v. Peraire-Bueno trial has ended in a mistrial.

Judge Jessica G.L. Clarke declared the outcome late Friday, citing a deadlocked jury unable to reach a unanimous verdict on charges of wire fraud and money laundering. Challenges seen in the case are to some extent similar to what happened between the Department of Justice and Tornado Cash.

$25 Million Trial Tests Whether Code Can Be a Crime

The case centered on two MIT-educated brothers, Benjamin and Noah Peraire-Bueno, accused of orchestrating an exploit on Ethereum’s Maximal Extractable Value (MEV) system.

Ethereum MEV is a core mechanism that determines how transactions are ordered in blocks. Prosecutors alleged the pair executed so-called “sandwich attacks”, manipulating transaction sequencing to siphon roughly $25 million from other traders.

Matthew Russell Lee of the Inner-City Press described the case as one of the most technically complex crypto cases to date, testing the boundaries between algorithmic opportunism and criminal intent.

Reportedly, defense attorneys argued that the brothers leveraged public blockchain code, conduct they claimed was “within the rules of the system.” Prosecutors, however, painted the scheme as a calculated digital heist disguised as clever coding. The mistrial was declared after three days of jury deliberations.

Throughout the trial, jurors struggled to understand how to interpret mens rea, or criminal intent, in the context of decentralized finance (DeFi).

According to courtroom transcripts shared by Lee, defense lawyer Looby argued that “the government didn’t want this description of intent in there,” emphasizing that the accused believed they were acting within the technical framework of Ethereum rather than committing a traditional fraud.

The prosecution countered that the defendants acted with “wrongful purpose,” exploiting a system designed for transparency to deceive and enrich themselves.

Judge Clarke noted that under existing statutes, “there is no requirement that the defendants knew their actions were illegal.”

The mistrial now leaves both regulators and developers with a difficult precedent, or lack thereof. The Peraire-Bueno case could have set a landmark judgment on whether code-based exploits in decentralized networks can be prosecuted under conventional fraud laws.

Instead, it ends with ambiguity. The Department of Justice has not yet announced whether it will seek a retrial. DeFi advocates could call the outcome a victory for open systems and innovation.

To some extent, this case mirrors the challenges seen with the Tornado Cash case. As the case centered on decentralization, it sparked debate on regulating blockchain tied to criminal misuse.

As it initially happened, a US federal appeals court struck down sanctions imposed by the Treasury Department on Tornado Cash. 

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

CME Group to launch options on XRP and SOL futures

CME Group to launch options on XRP and SOL futures

The post CME Group to launch options on XRP and SOL futures appeared on BitcoinEthereumNews.com. CME Group will offer options based on the derivative markets on Solana (SOL) and XRP. The new markets will open on October 13, after regulatory approval.  CME Group will expand its crypto products with options on the futures markets of Solana (SOL) and XRP. The futures market will start on October 13, after regulatory review and approval.  The options will allow the trading of MicroSol, XRP, and MicroXRP futures, with expiry dates available every business day, monthly, and quarterly. The new products will be added to the existing BTC and ETH options markets. ‘The launch of these options contracts builds on the significant growth and increasing liquidity we have seen across our suite of Solana and XRP futures,’ said Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products. The options contracts will have two main sizes, tracking the futures contracts. The new market will be suitable for sophisticated institutional traders, as well as active individual traders. The addition of options markets singles out XRP and SOL as liquid enough to offer the potential to bet on a market direction.  The options on futures arrive a few months after the launch of SOL futures. Both SOL and XRP had peak volumes in August, though XRP activity has slowed down in September. XRP and SOL options to tap both institutions and active traders Crypto options are one of the indicators of market attitudes, with XRP and SOL receiving a new way to gauge sentiment. The contracts will be supported by the Cumberland team.  ‘As one of the biggest liquidity providers in the ecosystem, the Cumberland team is excited to support CME Group’s continued expansion of crypto offerings,’ said Roman Makarov, Head of Cumberland Options Trading at DRW. ‘The launch of options on Solana and XRP futures is the latest example of the…
Share
BitcoinEthereumNews2025/09/18 00:56
SEC Approves Decision Concerning Bitcoin and 9 Altcoins – The Dow Jones of Cryptocurrencies May Have Arrived

SEC Approves Decision Concerning Bitcoin and 9 Altcoins – The Dow Jones of Cryptocurrencies May Have Arrived

The post SEC Approves Decision Concerning Bitcoin and 9 Altcoins – The Dow Jones of Cryptocurrencies May Have Arrived appeared on BitcoinEthereumNews.com. While the cryptocurrency market doesn’t yet have a comprehensive index like the Dow Jones or S&P 500, Bitwise is one step closer to filling this void. The company’s new exchange-traded product, Bitwise 10 Crypto Index ETF (BITW), has begun trading, offering individual investors and financial advisors access to the 10 largest crypto assets in a single product. BITW’s portfolio includes the following digital assets: Bitcoin, Ethereum, XRP, Solana, Chainlink, Litecoin, Cardano, Avalanche, Sui, and Polkadot. Bitwise CEO and co-founder Hunter Horsley told CNBC that this conversion makes the company the first to include altcoins like Cardano, Avalanche, Sui, and Polkadot, which don’t currently have spot ETFs, in an ETF from a major asset manager. “This step significantly broadens the investor base that can access various crypto assets,” Horsley said. “This is particularly important for assets without a spot ETF.” According to the CEO, this ETF also provides significant accessibility for smaller investors who invest through individual retirement accounts (IRAs) or pension funds and are only able to access ETFs. BITW, previously an index fund containing the same assets, has been converted to an ETF and is now listed on the stock exchange with $1.5 billion in assets under management. The ETF structure provides additional benefits to investors by offering greater trading flexibility, tax advantages, and lower costs, along with broader trading permissions. This development follows an expanded wave of ETFs that followed the U.S. Securities and Exchange Commission (SEC) approval of spot Bitcoin ETFs in January 2024. Since then, asset managers have sought approval for a wider range of ETFs, from altcoins like Sui and Aptos to Trump-themed tokens and memecoins like Dogecoin. However, as the market matures, crypto assets are beginning to take on their own dynamics, suggesting that broad-based products like BITW could offer a diversification tool similar…
Share
BitcoinEthereumNews2025/12/10 06:40