Government opposes Coin Center’s intervention as Ethereum exploit case enters its 11th day
US prosecutors have rejected attempts to introduce broader crypto policy arguments in the high-profile trial of brothers Anton and James Peraire-Bueno, who stand accused of conducting a $25 million exploit on the Ethereum blockchain using maximal extractable value (MEV) bots.
In a Tuesday filing to the US District Court for the Southern District of New York, prosecutors opposed an amicus curiae brief from Coin Center, a digital asset advocacy organization, arguing that such intervention would inappropriately inject crypto policy debates into a criminal trial.
Defense Pushes for Industry Context
The defense team for the Peraire-Bueno brothers contends that Coin Center’s brief would provide a necessary industry perspective, challenging what they describe as an overreach in the government’s theory of the case.
“If the government’s view stands, any deviation from blockchain protocol specifications could amount to federal criminal liability,” the defense argued, calling the prosecution’s interpretation “inconsistent with common sense.”
The brothers are accused of manipulating Ethereum’s transaction ordering system to extract $25 million from automated trading bots in April 2023. Prosecutors claim the pair carried out a “high-speed bait and switch” to deceive other network participants, while the defense insists they merely used a competitive trading strategy within blockchain rules.
Trial Draws Industry Attention
The trial, which entered its 11th day on Wednesday, has become a closely watched case within the crypto industry due to its potential implications for DeFi traders, validators, and blockchain developers.
MEV exploitation—where validators reorder transactions for profit—has generated nearly $963 million in Ethereum-based revenues since late 2022, according to data from the European Securities and Markets Authority.
If convicted, the Peraire-Bueno brothers could face up to 20 years in prison per charge. The proceedings are expected to continue into November, with a verdict that could shape future interpretations of crypto trading behavior under US law.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.