Opening arguments began Wednesday in the criminal trial of two brothers allegedly responsible for using maximum extraction value (MEV) bots to perpetuate a multimillion-dollar exploit.
Anton and James Peraire-Bueno appeared in a Fresh York courtroom as U.S. lawyers and defense attorneys presented different narratives about the alleged crypto scheme that resulted in the deletion of approximately $25 million.
According to Inner City Press, lawyers for the US government he claimed the brothers “deceived their victims” using a “quick bait and switch”. However, defense lawyers said “the victims were sandwich bots,” adding that the Peraire-Bueno duo used a trading strategy and argued that the profits were not illegal, so there was no money laundering associated with it.
“Yes, they cheated on cryptocurrency,” said the brothers’ defense attorney, Katherine Trefz, in her opening statement. “They brought it to the US and paid taxes on it: $6 million. Before they were arrested in their homes. It’s a complicated case.”
The alleged exploit on the Ethereum blockchain in April 2023 followed months of preparation, including attacks on accounts using MEV bots, research into potential penalties for misconduct, and code analysis. US authorities arrested the couple in May 2024.
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What do these fees mean for MEV operators?
Both brothers were charged with conspiracy to commit wire fraud, money laundering and conspiracy to obtain stolen property, potentially allowing the judge to sentence them to up to 20 years in prison on each charge if convicted.
Many industry experts are monitoring the trial for potential impact on the Ethereum network.
“I’m open to changing my mind, but it looks like that’s going to happen [like a] Quite a gray area for me.” he said Evan Van Ness, chief investment officer of crypto firm TXPool Capital, shortly after the brothers’ arrest in May 2024. “Many MEV operators are adopting the ‘all’s fair in love and MEV’ mantra.” And the brothers literally stuffed several attackers with sandwiches?”
“I think the allegations make sense.” he said Dankrad Feist, researcher at the Ethereum Foundation, in response to Van Ness. “They exploited a bug in the system for their own gain. Just because it’s a permissionless system doesn’t mean they are now [sic] rules. The Code is not law.”
At the time of publication, the trial was pending in the United States District Court for the Southern District of New York. Both brothers have been free since May 2024.
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