Ethereum

DeFi

motion

Clayton

James

The US government has filed a letter opposing the introduction of an amicus brief from the digital asset advocacy group DeFi Education Fund as the court considers a possible retrial for two brothers allegedly behind a $25 million exploit of the Ethereum blockchain.
In a Tuesday filing in the US District Court for the Southern District of New York, interim US Attorney Jay Clayton submitted a letter to Judge Jessica Clarke requesting that a brief from the DeFi Education Fund (DEF) not be accepted while the court considers a motion to dismiss the case against Anton and James Peraire-Bueno.&nbsp;
“Detached from the trial record, the brief merely recites legal arguments already rejected by this Court,” said Clayton, referring to the DeFi Education Fund’s amicus brief, adding:
<blockquote>
 “Here, where the Court has already ruled on the legal issues presented in the amicus brief and DEF does not offer any unique information relevant to the pending motion before the Court, DEF’s submission is not likely to aid the Court’s consideration of the particular issues [over a motion to acquit].”
</blockquote>
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 Source: PACER
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In November, Clarke <a href="https://cointelegraph.com/news/mev-bot-trial-ends-in-mistrial-after-jury-deadlock-on-brothers-verdict" rel="noopener noreferrer nofollow">declared a mistrial</a> in the case after jurors failed to agree on whether to convict or acquit the brothers, alleged to have committed the exploit using automated maximal extractable value (MEV) bots. Within a week, the US government <a href="https://cointelegraph.com/news/prosecutors-retrial-mev-bot-exploit-case" rel="noopener noreferrer nofollow">requested the court</a> schedule a retrial for the brothers “as soon as practicable in late February or early March 2026.”
Related: <a href="https://cointelegraph.com/news/safe-crypto-act-could-scare-crypto-fraudsters" rel="noopener noreferrer nofollow">Crypto lawyer says SAFE Crypto Act could deter scammers</a>
According to a proposed draft of the DEF brief filed on Dec. 19, the organization supported the motion to acquit or dismiss the indictment, arguing that the case had “broader implications” for the industry.
“[P]rosecutions like this one bring ambiguity and fear to software developers, chilling participation in DeFi and driving participants abroad,” said DEF, adding: “The DOJ should not get ahead of prospective lawmaking by bringing indictments based on ill-fitting interpretations of existing law, which will stifle growth by sowing confusion about the governing rules.”
Cointelegraph reached out to the DeFi Education Fund for comment, but had not received a response at the time of publication.
<h2 id="crypto-industry-weighs-in-on-implications-of-case">Crypto industry weighs in on implications of case</h2>
With the future of the Peraire-Bueno brothers uncertain, many in the crypto industry are still looking to how the case could affect MEV-related activities.
Crypto advocacy organization Coin Center <a href="https://cointelegraph.com/news/coin-center-amicus-brief-mev-bot-trial" rel="noopener noreferrer nofollow">filed an amicus brief</a> during the criminal trial, arguing against the US government’s theory of the case. Prosecutors also requested that the court not accept the brief.
The brothers initially faced charges of conspiracy to commit wire fraud, money laundering and conspiracy to receive stolen property. If retried on the same charges and found guilty, they could potentially be sentenced to up to 20 years in prison for each count.
Magazine: <a href="https://cointelegraph.com/magazine/cryptos-impossible-choice-when-privacy-and-aml-laws-conflict/" rel="noopener noreferrer nofollow">When privacy and AML laws conflict: Crypto projects’ impossible choice</a>

US prosecutors oppose Defi Education Fund brief ahead of potential MEV case retrial

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