Two MIT graduates, the Peraire-Bueno brothers, are facing trial in Manhattan federal court as of October 15th. They are accused of exploiting a vulnerability in the Ethereum blockchain to steal $25 million worth of cryptocurrency within just 12 seconds in April 2023. Prosecutors have filed charges of conspiracy, wire fraud, and money laundering, each with potential penalties of up to 20 years imprisonment. The defense argues that the brothers’ actions were simply strategic moves in a decentralized crypto market, not illegal acts. The central question at stake is whether code alone can be considered fraudulent and if criminal intent can be proven without direct victim interaction. The trial is expected to continue until early November.