U.S. Prosecutors Challenge Crypto Policy Arguments in Ethereum Exploit Case

According to Cointelegraph, U.S. prosecutors are contesting attempts to introduce cryptocurrency policy arguments in the legal proceedings against Anton and James Peraire-Bueno. The brothers are accused of exploiting Ethereum using maximal extractable value (MEV) bots, allegedly resulting in a $25 million exploit in April 2023. In a recent filing with the U.S. District Court for the Southern District of New York, prosecutors opposed an amicus curiae brief submitted by Coin Center, a cryptocurrency advocacy group. The brief could potentially sway the jury towards acquitting the defendants. Prosecutors argue that such policy discussions should be directed to Congress rather than the courts, emphasizing that the court's focus should remain on whether the evidence presented at trial could lead a reasonable jury to find the defendants guilty. The defense team for the Peraire-Bueno brothers countered that the Coin Center brief offers a unique perspective that could aid the court in understanding the prosecutors' theory. They argued that the government's stance implies that any deviation from blockchain protocol specifications during economic activities could result in federal criminal liability. The defense criticized this theory as inconsistent with common sense and legal precedent. The case, which began with opening arguments on October 15, has garnered significant attention from the cryptocurrency industry due to its potential implications. The brothers face charges of conspiracy to commit wire fraud, money laundering, and conspiracy to receive stolen property. The prosecution alleges that the Peraire-Buenos used MEV bots to manipulate transaction orders within the Ethereum blockchain, effectively executing a "high-speed bait and switch" to misappropriate digital assets. In contrast, the defense maintains that the so-called victims were sandwich bots, and the brothers were merely employing a trading strategy. The trial, now in its 11th day, is expected to continue into November. If convicted, the Peraire-Bueno brothers could face up to 20 years in prison for each charge. The case has drawn widespread interest from industry leaders and advocacy groups, who are closely monitoring the proceedings due to the potential impact on the broader crypto sector. Cointelegraph attempted to contact a representative from Coin Center for comment but had not received a response by the time of publication.