After a lengthy trial in New York, a jury was unable to decide on the fate of Anton and James Peraire-Bueno, brothers educated at MIT and charged with fraud and money laundering in connection with a $25 million exploit on the Ethereum blockchain.

In a ruling issued on Friday, US District Judge Jessica Clarke declared the trial a mistrial due to jurors’ inability to reach a unanimous decision on the charges.

This ruling followed three weeks of proceedings in Manhattan federal court, characterized by diverging narratives from the prosecution and defense regarding the brothers’ actions with maximal extractable value (MEV) bots.

One of the main arguments presented by the prosecution claimed that the brothers had deceived users into disadvantageous trades by using these automated bots, which they had planned to exploit over a detailed timeline of months, culminating in a miraculous 12-second operation that garnered them $25 million.

The prosecution emphasized that engaging in a ‘bait and switch’ strategy deviates sharply from legitimate trading practices, labeling it outright fraud and cheating.

In contrast, the defense disputed the prosecution’s stance, suggesting the actions were akin to competitive tactics employed in baseball, arguing that their actions did not constitute fraud, conspiracy, or money laundering.

Implications for the Crypto Industry

Despite the outcome of the trial, the crypto space remains in a state of uncertainty as debates around the legality of MEV-related activities continue. The organization Coin Center actively submitted an amicus brief during the proceedings, asserting the need for clarity in these interpretations.

Carl Volz, from the law firm Gunnercooke, expressed skepticism regarding the indictment, suggesting it might not meet the standards for wire fraud, and raising concerns about the implications for the defendants moving forward.

This story is still evolving, with more details expected.