Ethereum News Today: Court Rejects Dismissal of $25M Ethereum MEV Fraud Charges Trial Set for October 2025

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Thursday, Jul 24, 2025 9:01 am ET1min read
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Aime RobotAime Summary

- U.S. court rejects dismissal of $25M Ethereum MEV fraud charges against Anton and James Peraire-Bueno, ruling their blockchain protocol exploitation violates wire fraud laws.

- Siblings allegedly manipulated MEV bots using bait transactions, fake validators, and forged block signatures to siphon funds via privacy-focused exchanges.

- Judge clarifies that technical sophistication does not exempt fraudulent intent, establishing potential precedent for prosecuting blockchain crimes under existing statutes.

- Case tests applicability of traditional laws to DeFi, with conviction risks up to 20 years per count and implications for future MEV exploit prosecutions.

A U.S. federal court has denied the request of two brothers, Anton and James Peraire-Bueno, to dismiss charges related to a $25 million fraud scheme targeting Ethereum’s maximal extractable value (MEV) bots. Judge Jessica Clarke of the U.S. District Court ruled that the alleged exploitation of blockchain protocols to defraud automated trading systems constitutes a violation of the federal wire fraud statute, setting the stage for a trial scheduled for October 2025 [1].

The case centers on the siblings’ use of a four-step strategy to manipulate MEV bots—automated tools designed to reorder or insert transactions to capture arbitrage profits. Court documents reveal the plan involved “bait” transactions, the creation of

Ethereum
validators, and the exploitation of a manipulated block signature to access pre-finalized blockchain data. By luring bots into executing trades on illiquid assets, the brothers allegedly siphoned funds through a chain of privacy-focused exchanges and
shell
accounts. Prosecutors described the attack as a “blockbuster robbery” executed in under 12 seconds, leveraging the technical complexity of MEV mechanisms [1].

Defense arguments emphasized the open-source nature of Ethereum’s protocols, claiming the siblings’ actions were not prohibited under blockchain’s transparent rules. They also highlighted the irony that MEV bots themselves engage in aggressive front-running, questioning why similar behavior by the defendants would be criminalized [1]. However, the court rejected these claims, asserting that fraudulent intent—regardless of technical sophistication—remains punishable under existing laws. Judge Clarke noted that the wire fraud statute provides “sufficient notice” that exploiting digital systems to misappropriate funds is illegal, even when novel methods are employed [1].

The ruling has drawn attention for its potential to establish a legal precedent for prosecuting blockchain-related crimes. While a single count of conspiracy to receive stolen property was dismissed due to updated DOJ policies, the core charges of wire fraud and money laundering remain. If convicted, the defendants face up to 20 years in prison per count. Legal analysts view the case as a pivotal moment for decentralized finance (DeFi), as it tests the applicability of traditional statutes to emerging technologies. The outcome could influence future prosecutions of MEV exploits and prompt DeFi developers to enhance security measures [1].

Sources:

[1] [Tech-Savvy Siblings Outwitted Ethereum’s Automated Traders—Court Refuses to Let Them Off the Hook] [https://www.livebitcoinnews.com/tech-savvy-siblings-outwitted-ethereums-automated-traders-court-refuses-to-let-them-off-the-hook/]