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Coin Centera nonprofit that supports digital currency policy, has filed a statement in a criminal trial involving two brothers accused of using Ethereum
ETH
$3,516.66
system for profit.
Anton and James Peraire-Bueno are being prosecuted for alleged manipulation of Ethereum using a technique known as maximum extractable value (MEV).
Coin Center’s brief was not filed as a party in the case, but rather as a third-party contribution offering an expert perspective. In his archive, the organization disagreed with the government’s argument that the defendants committed fraud by failing to act as “honest validators”.
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The group explained that, in cryptocurrency systems like Ethereum, acting honestly means following the rules of the protocol as written in the software. Coin Center stated that the brothers did not violate these rules and to apply a different standard would be unfair and confusing.
The brief said the government is trying to create a new behavioral expectation for validators, one that does not currently exist in ethereum design
Coin Center warned that using criminal charges to enforce this kind of new standard could harm innovation and create legal uncertainty for others in the crypto industry.
Meanwhile, US prosecutors told the court that the brothers used false appearances to present themselves as trusted validators, which allowed them to carry out the exploit.
Defense attorneys argued that the alleged victims were actually automated trading bots, not individual users, and that the government’s theory made little sense.
Recently, a former 18decimal employee, Travis Chen, testified that the brothers spent months planning a crypto theft of $25 million. What did he say? Read the full story.
