MEV Boost “Fraud” Case Ends In Mistrial As Jury Fail To Reach Verdict

A US court judge has declared a mistrial in the case against two brothers for allegedly exploiting the Ethereum (ETH) MEV boost system to make a $25 million profit.

Historic 12-second boost for MEV ‘steal’

In May 2024, the US Department of Justice Announce An indictment against Anton and James Pepper Bueno, charging the MIT-trained brothers with conspiracy to commit wire fraud and money laundering.

According to the Department of Justice, the Pepaire-Bueno brothers stole $25 million in ETH in a first-of-its-kind heist targeting the prominent blockchain network. It is worth noting that the brothers discovered a flaw in the Ethereum MEV Boost system, which allows them to view hidden pending transactions:

As block creators, they “poisoned” the block to trick trading bots into revealing their strategies, and then carried out a sandwich attack, purchasing a large amount of ETH before another trader’s order and selling immediately after the price rose.

This attack targeted three cryptocurrency traders, allowing them to make a net profit of $25 million in just 12 seconds. According to A a report By Business Insider In the case filed before U.S. District Judge Jessica Clark for the Southern District of New York, plaintiffs likened the crypto trading hustle to a popular scam.

Assistant US District Attorney Danielle Marie Kudla stated that creating a toxic mass was an act of deception against other traders and should be punished by law. However, the defendants’ lawyers disputed this account, saying that the Pepaire-Bueno brothers did not operate outside the confines of trading in the bot-driven world of Ethereum.

Jury fails to convict or acquit “MEV Brothers”

On Friday, November 7, the jury in the case struggled to reach a unanimous verdict, according to Business Insider. The team consists of 12 players. He stated that the bizarre case that was the subject of a four-week trial had taken a great personal emotional toll.

It is worth noting that some jurors burst into tears during deliberations, while others complained of insomnia throughout the three days of deliberations. Furthermore, one of the jurors was scheduled to travel Saturday, according to Inner City Press.

After a motion for a mistrial, prosecutors were willing to move the case to Monday and continue with 11 jurors. However, Judge Clark chose to declare a mistrial because she strongly believed that an extension would resolve jury confusion. While this ruling may provide some relief to the Pepper-Bueno brothers, it is worth noting that the charges still stand and prosecutors could still move for another trial.

Featured image of Protos, chart from Tradingview

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