Ethereum Exploit Retrial Set for 2026 After Jury Deadlock

In a Monday filing with the US District Court for the Southern District of New York, federal prosecutors formally requested that a judge schedule a retrial for the Peraire-Bueno brothers “as soon as practicable in late February or early March 2026.” This legal maneuver comes approximately three days after the presiding judge declared a mistrial in the case, marking a significant setback for government attorneys who had spent years building their case against the brothers.

The timing of the prosecution’s request demonstrates the Department of Justice’s determination to pursue the case despite the initial jury deadlock. By seeking trial dates in early 2026, prosecutors are allowing sufficient time to refine their legal strategy while maintaining momentum in one of the highest-profile cryptocurrency fraud prosecutions to date. The case represents a critical test of the government’s ability to secure convictions in complex blockchain-based criminal cases.

At the heart of the case lies the alleged manipulation of Ethereum’s transaction validation process, which prosecutors claim enabled the brothers to illicitly obtain approximately $25 million. The sophisticated nature of the alleged exploit underscores the evolving challenges facing blockchain security and the increasing sophistication of attacks targeting decentralized finance protocols.

The charges against Anton and James Peraire-Bueno include money laundering and fraud, reflecting the government’s view that the brothers not only executed the technical exploit but also engaged in systematic efforts to conceal the origins of their illicit gains. The substantial amount involved—$25 million—places this case among the more significant cryptocurrency fraud prosecutions pursued by US authorities, drawing attention from both the financial and blockchain communities.

The jury’s inability to reach a verdict in the initial trial highlights the considerable challenges prosecutors face when presenting complex blockchain-related evidence to juries. Technical concepts such as transaction validation mechanisms, smart contract interactions, and blockchain consensus protocols can prove difficult for laypersons to comprehend, potentially creating obstacles for securing convictions in similar cases.

The Department of Justice’s decision to pursue a retrial signals the government’s commitment to establishing legal precedents in cryptocurrency enforcement. A successful prosecution would strengthen the regulatory framework surrounding digital assets, while an acquittal could embolden potential bad actors within the crypto space. The outcome of this case may influence how future blockchain-related crimes are investigated and prosecuted across the United States.

As the legal proceedings continue toward their 2026 retrial date, the cryptocurrency industry will be watching closely. The case against the Peraire-Bueno brothers represents more than just the fate of two individuals—it serves as a bellwether for how effectively traditional legal systems can adapt to address crimes enabled by emerging financial technologies.