Government Pushback Highlights Legal Tensions Around DeFi and MEV Practices
US prosecutors have formally opposed the inclusion of an amicus brief submitted by the DeFi Education Fund (DEF) as a federal court considers whether to dismiss charges or move toward a retrial in a high-profile Ethereum MEV exploit case. The dispute underscores growing legal uncertainty around decentralized finance and automated trading strategies on blockchains.
In a filing submitted to the US District Court for the Southern District of New York, federal prosecutors argued that the DEF brief offers no new legal insight relevant to the pending motion involving brothers Anton and James Peraire-Bueno. The brothers are accused of orchestrating a $25 million exploit of the Ethereum blockchain using automated maximal extractable value (MEV) bots.
Prosecutors stated that the arguments raised by DEF merely repeat claims the court has already considered and rejected. According to the government, accepting the brief would not assist the judge in evaluating the current motion to acquit or dismiss, particularly since the case is grounded in specific trial evidence rather than broader policy concerns.
The case previously resulted in a mistrial in November, after jurors failed to reach a unanimous verdict. Following that outcome, the government signaled its intent to pursue a retrial as early as February or March 2026, keeping the charges alive. The brothers face allegations including wire fraud conspiracy, money laundering, and receiving stolen property, each carrying potential sentences of up to 20 years in prison.
As courts grapple with how existing laws apply to DeFi and MEV activities, the outcome of this case may shape future enforcement actions. The judge’s decision on whether to allow the brief — and whether to proceed with a retrial will be closely watched across the crypto and blockchain sectors.
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.