MIT graduates stand trial for $25 million Ethereum exploit case

According to ChainCatcher, citing Decrypt, two MIT graduate Peraire-Bueno brothers are on trial in Manhattan federal court, accused of exploiting a vulnerability in the Ethereum blockchain 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 case is expected to continue until early November.