A federal jury in New York has declared a mistrial in the fraud case against two brothers accused of stealing about $25 million in cryptocurrency. James and Anton Peraire-Bueno, recent graduates of MIT, stood trial over charges related to Ethereum blockchain trading schemes. After three weeks of technical arguments and three days of jury deliberations, the panel said they could not reach a unanimous verdict.
US District Judge Jessica Clarke announced the mistrial on Friday. Jurors shared that the decision weighed heavily on them, with some breaking down in tears and others facing sleepless nights during the process. Despite initial efforts to continue deliberations, the judge decided that further attempts would be unproductive.
The case centered on controversial crypto trades called "sandwich attacks." These involve bots that place large buy and sell orders around another user’s transaction to profit by altering prices. The brothers claimed they were fighting fire with fire, using a strategy designed to catch these sandwich bots off guard and reclaim funds. Prosecutors, however, argued that their actions amounted to outright theft.
One juror, speaking anonymously, said that while the facts were clear, the legal application was difficult to resolve. The trial drew attention not only for its financial sums but also for the ethical and legal questions it raised in a largely unregulated digital market.
The Peraire-Bueno family showed strong support throughout the trial. Their younger brother and their parents, including their father Jaime Peraire, a prominent MIT professor, were present at every session. The courtroom saw emotional moments after the mistrial was declared, with hugs exchanged and tears shed.
The case divided the crypto community. Sandwich attacks themselves are legal but controversial. Some admired the brothers for striking back at these bots, while others denounced the charges. David Yakira, CEO of Savannah Technologies—whose trading bots were targeted—testified about the sudden and massive losses his firm experienced, calling the event unprecedented in Ethereum’s history.
Defense attorneys painted the brothers as innovators using an aggressive but legitimate trading method. "They should be celebrated, not vilified," one lawyer stated.
With the mistrial, prosecutors must now decide whether to pursue a new trial. This case highlights the uncertain legal ground in cryptocurrency trading and raises questions about how emerging digital markets will be regulated and policed going forward.