Crypto kings or criminals? MIT-educated brothers stand trial over alleged $25 million crypto theft

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.”

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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.