Crypto trials need clearer explanations of DeFi and its rules

In the recent mistrial of the Ethereum exploit case, United States v. Peraire-Bueno, jurors struggled with the complexities of decentralized finance (DeFi) rules. The defendants, who allegedly profited by exploiting Ethereum sandwich bots, faced charges including wire fraud and money laundering. Unlike simpler cases like sports betting, the prosecution had to demonstrate that someone was defrauded, which proved challenging. While they argued that the bots were deceived, the defense claimed that the actions taken were legitimate, governed purely by Ethereum’s code. During deliberations, jurors expressed confusion over the analogies used to explain the case, highlighting the need for clearer explanations of DeFi mechanics. Their struggle illustrates the broader issue of legal systems being ill-equipped to handle the unique aspects of cryptocurrency.

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