Two MIT-educated brothers failed to get fraud charges dismissed in connection with a $25 million cryptocurrency theft from the Ethereum blockchain. The federal government charged them with executing a fraudulent scheme exploiting a vulnerability on the Ethereum network. The brothers used their expertise to manipulate MEV bots to net the haul in just 12 seconds.

MEV bots are designed to front-run transactions for higher fees and profitable arbitrage opportunities. The brothers created a detailed plan and established Ethereum validators to attract the bots. They argued that their actions were permitted by the system’s code and claimed unfair targeting. Prosecutors dropped one charge, and the trial is set for October 2025.

US District Judge Jessica Clarke denied the motion to dismiss, and the pre-trial motions phase continues for Anton and James Peraire-Bueno. They face wire fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering charges. The charges typically carry significant prison sentences and fines. The trial date is pending confirmation.

Read more at Cointelegraph: MIT Brothers Lose Bid To Dismiss $25M Ethereum Fraud Charges