Coin Center Files Amicus Brief in Ethereum MEV Exploit Trial
Cryptocurrency advocacy group Coin Center has submitted an amicus curiae brief in the criminal trial of Anton and James Peraire-Bueno, two brothers accused of exploiting the Ethereum blockchain with maximal extractable value (MEV) bots. The pair allegedly orchestrated a $25 million MEV exploit in April 2023.
Dispute Over 'Honest Validation' Concept
Coin Center's brief, filed on the fourteenth day of the trial, directly challenges a key legal theory advanced by prosecutors. The U.S. government argues that the defendants engaged in fraud by misrepresenting themselves as honest validators. According to courtroom reporting from Inner City Press, prosecutors intend to assert that this misrepresentation allowed the exploit to occur.
In its filing, Coin Center says the concept of 'honest validation' in the Ethereum ecosystem is a technical rather than legal designation. The group notes, Honest validation in cryptocurrency communities is a mathematical checknot a legal or normative judgmentand Defendants appear to have contravened none of the clear rules or controls found within the Ethereum protocol in a manner deserving outside interference or enforcement.
Industry Practice and Legal Precedent
Coin Center also warns that adopting the prosecutions theory could contradict industry standards and established legal principles. The brief states, Adoption of the prosecutions honest validator theory of fraud would be alien to widespread industry practice and contravene longstanding legal principles of damnum absque injuriaharm without legal injuryand fair notice.
Defense Response
Defense attorneys have reportedly called the prosecutions theory a nonsensical allegation, arguing in their opening remarks that the supposed victims here were sandwich bots.
Potential Impacts and Sentencing
The outcome of this case is expected to carry substantial implications for how cryptocurrency protocols and actions within blockchain networks are interpreted under U.S. law. The Peraire-Bueno brothers face charges of conspiracy to commit wire fraud, money laundering, and conspiracy to receive stolen property. If convicted, each could face up to 20 years in prison per charge.
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