 "A hooded man holds a laptop computer as blue screen with an exclamation mark is projected on him in this illustration picture taken on May 13, 2017. Representational Image/Reuters")
The legal lines between clever coding and outright crime are being drawn in a Manhattan federal courtroom as two MIT-educated brothers stand trial for allegedly orchestrating a sophisticated, 12-second heist that netted them $25 million in Ethereum cryptocurrency .
Anton Peraire-Bueno, 25, and James Peraire-Bueno, 29, both alumni of the Massachusetts Institute of Technology, are facing serious federal charges, including conspiracy, wire fraud, and money laundering, each carrying a potential sentence of up to 20 years in prison.
A three-month trap
Prosecutors allege the brothers meticulously planned the digital coup over three months.
Using their advanced knowledge of computer science and mathematics, they exploited a vulnerability in the Ethereum blockchain’s transaction mechanism.
They reportedly set “bait transactions” to lure automated trading bots, then accessed and altered the private transactions, making off with $25 million and leaving the victims with worthless digital assets. Evidence presented includes the brothers’ alleged online searches for terms like “how to wash crypto” and “money laundering statute of limitations.”
The defence: Outsmarting, not stealing
The defence, however, maintains a bold position: the brothers’ actions were not fraudulent theft, but a legitimate—if aggressive—form of arbitrage.
In the largely unregulated and high-stakes world of crypto, they argue that exploiting economic incentives and outsmarting “predatory” trading bots is fair game, comparing their moves to simply making a better trade.