MIT graduates stand trial for $25 million Ethereum exploit case

Foresight News reported, according to Decrypt, that two MIT graduate Peraire-Bueno brothers stood trial in Manhattan federal court on October 15. They are accused of exploiting a vulnerability in the Ethereum blockchain in April 2023 to steal $25 million worth of cryptocurrency in just 12 seconds. Prosecutors have charged them with conspiracy, wire fraud, and money laundering, each carrying a maximum sentence of 20 years in prison. The defense insists that this was merely a strategic move in an unregulated crypto market, not a crime. The core dispute in the case is whether code alone can constitute fraud, and whether criminal intent can be proven without direct victim interaction. The trial is expected to continue until early November.