A U.S. federal judge declared a mistrial in the case of MIT-educated brothers, Anton and James Peraire-Bueno, accused of orchestrating a $25 million Ethereum heist. The decision came after the jury failed to reach a unanimous verdict following days of deliberation. The case, one of the most closely watched crypto-related trials of 2025, has raised complex questions about blockchain manipulation and decentralized finance (DeFi) ethics.

The Allegations: Exploiting the Ethereum Network

Prosecutors alleged that the brothers used their advanced computer science and blockchain engineering knowledge, gained from the Massachusetts Institute of Technology, to exploit vulnerabilities in the Ethereum blockchain. They reportedly manipulated the MEV (Maximal Extractable Value) process—used to prioritize transactions—to unlawfully redirect $25 million worth of crypto assets in mere seconds.

Authorities claimed the brothers executed the scheme in April 2023, leveraging an understanding of validator mechanisms to front-run and reverse transactions within Ethereum’s decentralized ecosystem.

Defense Argues for Innovation, Not Theft

The defense countered that the brothers’ actions did not constitute theft, asserting that they merely took advantage of a publicly accessible blockchain feature. They compared their conduct to “ethical hacking” or algorithmic trading—complex, but not illegal under existing crypto laws. The case has since become a landmark legal test for how U.S. courts interpret ownership and exploitation on decentralized networks.

Complexity of Blockchain Law Raises Broader Questions

Legal experts note that the case underscores the gray area in cryptocurrency regulation. With no clear legal precedent, jurors reportedly struggled to determine whether the alleged actions constituted fraud or simply ingenious use of blockchain dynamics. The mistrial reflects growing challenges in applying traditional financial laws to the rapidly evolving world of decentralized technology.

What’s Next: Prosecutors May Retry the Case

Federal prosecutors have not yet announced whether they will retry the case, but sources suggest the Department of Justice’s crypto enforcement unit is likely to pursue new charges. The brothers, who have maintained their innocence throughout, remain free on bond pending further proceedings.

Observers say the outcome could influence future crypto regulation and the boundaries of smart contract exploitation. The mistrial highlights how courts continue to grapple with the blurred lines between innovation and criminality in the digital finance era.