MIT Brothers’ $25M Crypto Heist in 12 Seconds Revealed

According to testimony from former quantitative trader Travis Chen, Anton and James Peraire-Bueno spent months meticulously planning their alleged cryptocurrency heist, focusing specifically on exploiting weaknesses in Ethereum’s MEV-Boost protocol. The brothers, both MIT graduates who operated through their firm 18decimal, allegedly became validators on Ethereum’s blockchain, giving them privileged access to view transaction data early. This position allowed them to identify and target what are known as “sandwich bots”—automated trading programs that profit by inserting transactions before and after pending trades to capitalize on price slippage.

Chen’s testimony revealed that during a December 2022 planning meeting, the brothers outlined an operation they referred to as “Omakase,” designed specifically to turn the sandwich bots’ own strategies against them. Notes from that meeting, shown to jurors, indicated the scale of their ambitions: “Operation size is enormous … $6 million on the contract. Large end if you trap them all at once, and could be way higher.” The brothers allegedly spent months analyzing trading patterns to design eight carefully crafted “bait” transactions intended to lure these automated trading programs into their trap.

On April 2, 2023, the alleged scheme reached its climax in a breathtakingly brief 12-second window. The brothers executed their plan, exploiting the MEV-Boost vulnerability to drain approximately $25 million from the targeted sandwich bots. The operation’s success was immediately apparent, but so was the response from the cryptocurrency ecosystem. Flashbots, the creator of the MEV-Boost software, fixed the vulnerability within 24 hours of the exploit, demonstrating both the fragility of blockchain systems and the rapid response capabilities of developers in the space.

The aftermath revealed further attempts by the alleged perpetrators to manage the situation. Flashbots developer Robert Miller testified that the brothers later contacted him anonymously, asking him not to characterize their actions as an “exploit” in exchange for sharing details of a similar strategy. Miller stated he accepted this proposal, though defense attorneys had previously objected to his testimony, arguing it would be based on expertise rather than direct investigation. Prosecutors also revealed that the brothers had Googled “how to wash crypto” and “top crypto lawyers” during their planning, though the defense has sought to exclude this search history, claiming the searches occurred during privileged attorney consultations.

Travis Chen’s testimony came under a nonprosecution agreement with the government that required him to forfeit $2.4 million—his cut from the alleged operation. His cooperation provided crucial insight into the brothers’ planning and execution, though the defense has sought to limit aspects of his testimony. In a letter to the court, defense attorneys noted that Chen “repeatedly told the government that he did not think the alleged exploit was illegal or even wrongful at the time it occurred,” arguing that any post-indictment remorse is irrelevant to what the brothers knew or believed during the planning and execution phases.

The Peraire-Bueno brothers now face serious federal charges of wire fraud and money laundering conspiracy, each carrying potential 20-year prison sentences. They went on trial last Tuesday after rejecting a plea deal, setting the stage for a high-stakes legal battle that will examine the boundaries of blockchain exploitation and financial crime in the cryptocurrency era. The case represents one of the most sophisticated alleged cryptocurrency thefts to reach federal court, highlighting both the vulnerabilities in blockchain systems and the legal system’s evolving approach to prosecuting such crimes.