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A U.S. judge denied the brothers' request to dismiss the $25 million encryption fraud charges.
Gate News bot message, U.S. District Judge Jessica Clarke has denied a motion by a pair of MIT graduate brothers to dismiss $25 million in crypto assets fraud charges. Prosecutors accused the Peraire-Bueno brothers of exploiting a vulnerability in the Ethereum network in May 2024 to carry out an arbitrage attack by manipulating MEV Bots. Court documents show that the two used 16 Ethereum validation nodes and 529.5 ETH to intercept MEV Bots' trading profits in just 12 seconds. Although the defendants argued that "the system code allows such operations," the judge still found their actions met the criteria for wire fraud. The case is expected to go to trial in October 2025, with the brothers facing felony charges of wire fraud and conspiracy to commit money laundering. Prosecutors have dropped one count of conspiracy to receive stolen property, but the remaining charges will proceed to trial.