face – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Wed, 27 Aug 2025 10:06:24 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 face – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Ethereum (ETH) Bull Run Heats Up as $6B Shorts Face Liquidation https://earlybirdsinvest.com/ethereum-eth-bull-run-heats-up-as-6b-shorts-face-liquidation/ https://earlybirdsinvest.com/ethereum-eth-bull-run-heats-up-as-6b-shorts-face-liquidation/#respond Wed, 27 Aug 2025 10:06:24 +0000 https://earlybirdsinvest.com/ethereum-eth-bull-run-heats-up-as-6b-shorts-face-liquidation/

TL;DR

  • Ethereum tracks rising global liquidity, with analysts warning a breakout could send ETH toward $7,000.
  • Over $6 billion in shorts risk liquidation at $4,900, raising chances of a sharp squeeze.
  • BitMine treasury and ETF inflows boost demand, with $2.8B entering spot ETH funds in August.

Liquidity and Macro Drivers

Ethereum is holding firm above $4,550 as macro conditions improve and liquidity expands. Analyst Merlijn The Trader noted that Ethereum is tracking global M2 liquidity, showing a close relationship between monetary supply and price action.

“The $ETH accumulation phase is history. Bull run phase is active,” he said.

His chart showed Ethereum rising in step with liquidity levels since mid-2025. He warned,

“Ignore this signal, and you’ll be buying ETH at $7K instead of $4.4K.”

Leverage is another factor to watch. Analyst Rekt Fencer said more than $6 billion in Ethereum short positions could be forced to close if the price reaches $4,900. “Massive short squeeze is coming soon,” they wrote.

Forced liquidations occur when markets move against traders holding leveraged short bets. Covering those positions can accelerate buying pressure, especially near major resistance zones. Ethereum has risen 4% in the past day and almost 9% weekly, bringing such levels within reach.

Market Structure and Technical Levels

Analyst Daan Crypto Trades highlighted that Ethereum briefly cleared its all-time high before retracing. He pointed to inefficiencies left by the “Powell candle” and said the four-hour trend remains strong, with ETH doubling since July without retesting lower ranges.

“The 4H 200MA/EMA is catching up quickly and corresponds with the range low of this area,” he explained.

He added that a sustained move above $5,000 would likely confirm a new phase of price discovery, while the structure remains bullish unless Ethereum drops below $4,000. In a later update, he stressed that $4,900 is the key resistance and $4,000–$4,100 is the main support area.

Institutional Buying and ETF Flows

Institutional demand is adding to momentum. As CryptoPotato reported, BitMine has accumulated 1.7 million ETH worth $7.9 billion in just over two months. That represents 1.4% of the total Ethereum supply and surpasses the pace of Bitcoin accumulation by corporate treasuries.

Spot Ethereum ETFs in the United States are also drawing strong inflows. More than $2.8 billion entered ETH spot funds in August, with inflows picking up pace again this week. Trading volumes for Ether treasuries last week overtook those for Bitcoin treasuries, showing renewed institutional focus on Ethereum.

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]]> https://earlybirdsinvest.com/ethereum-eth-bull-run-heats-up-as-6b-shorts-face-liquidation/feed/ 0 55358 Wall Street Analysts Expect This Popular AI Stock Could Face Challenges Ahead https://earlybirdsinvest.com/wall-street-analysts-expect-this-popular-ai-stock-could-face-challenges-ahead/ https://earlybirdsinvest.com/wall-street-analysts-expect-this-popular-ai-stock-could-face-challenges-ahead/#respond Sun, 24 Aug 2025 03:23:14 +0000 https://earlybirdsinvest.com/wall-street-analysts-expect-this-popular-ai-stock-could-face-challenges-ahead/ Nvidia’s a terrific company, but it faces near-term challenges in China — and there’s a terribly high price tag on Nvidia stock.

In just a little under one week, Nvidia (NVDA 1.65%) will report its earnings for Q2 2025.

For the most part, analysts are optimistic about the report, due out after the close of trading on Aug. 27. Consensus forecasts have the semiconductor company growing earnings 48.5% year over year, to $1.01 per share, as insatiable demand for artificial intelligence (AI) chips drives a near-53% rise in revenue to almost $46 billion.

That’s a lot of money Nvidia will be raking in for a single quarter. This is one of the primary reasons why a staggering 58 analysts polled by S&P Global Market Intelligence give Nvidia stock either a “buy” or an “outperform,” or an equivalent rating — versus only one single analyst who says “sell.”

Semiconductor computer chip with the letters AI in the middle.

Image source: Getty Images.

One reason why two analysts are worried about Nvidia

And yet, not everything’s unicorns and rainbows for Nvidia stock. As the final countdown to earnings day begins, two separate Wall Street analysts chimed in Wednesday morning to raise reservations about Nvidia stock and the challenges that lie ahead for it.

First up was Deutsche Bank, where analyst Ross Seymore set a price target of $155 that implies the stock could fall 12% over the next 12 months. Ordinarily, the prospect of a 12% near-term loss in a stock would inspire an analyst to recommend selling that stock. But perhaps fearing to deviate too far from the herd on this popular AI stock, Seymore only reiterated a “hold” rating on Nvidia. (Seymore is still one of only a half-dozen analysts with neutral ratings on Nvidia).

No matter. Whether any one analyst thinks Nvidia is a “buy” or just a “hold” probably shouldn’t concern us as much as why he rates the stock as he does. And in Seymore’s case, the answer couldn’t be clearer:

Writing on StreetInsider.com on Wednesday, Seymore warns that U.S. trade restrictions on semiconductor exports to China will cost Nvidia about $8 billion in “foregone” revenue in Q2. True, a resumption of shipments upon receiving export licenses from the Trump administration should help rectify this situation by Q3. But there’s a cost to that solution — specifically, the Trump Administration’s requirement that, to obtain export licenses, Nvidia must fork over 15% of any revenue it generates in China to the IRS.

With China accounting for roughly $17 billion of Nvidia’s revenue over the last 12 months, that could amount to a $2.6 billion drag on Nvidia’s profits over the next 12 months.

KeyBanc chimes in

Investment bank KeyBanc shares Deutsche Bank’s concerns about Nvidia and China. On the one hand, KeyBanc anticipates Nvidia could book $2 billion to $3 billion in revenue from selling H20 and B40 chips in China next quarter. On the other hand, the banker believes this revenue is unreliable and dependent upon the receipt of export licenses from Washington.

For this reason, KeyBanc warns Nvidia may “exclude direct revenue from China” when giving revenue guidance next week, potentially creating a kind of guidance miss that could send Nvidia shares lower.

KeyBanc also cites the “potential 15% tax on AI exports” from the U.S. side as a risk, and adds that “pressure from the [Chinese] government for its AI providers to use domestic AI chips” could dampen Nvidia’s China revenues even further — adding a third risk that Deutsche didn’t mention!

Finally, some good news

Now, I hope I haven’t painted too bleak a picture for you here. Fact is, despite his reservations, Deutsche analyst Seymore still expects Nvidia to report a “typical” earnings beat next week, exceeding the company’s $45 billion revenue forecast by about $2 billion. Blackwell revenue is ramping, says Seymore, more than doubling sequentially between Q4 2024 and Q1 2025, to $24 billion.

With the prospect of an imminent earnings beat, it makes sense that Seymore would hesitate to recommend selling Nvidia stock — even if he does feel it’s a bit overpriced.

Furthermore, KeyBanc agrees that Blackwell production is ramping, and a new Blackwell Ultra (B300) chip is on the way, potentially boosting revenue even more in Q3. For these and other reasons, KeyBanc not only still rates Nvidia stock “overweight” (i.e., buy). KeyBanc actually raised its price target on the stock to $215 on Wednesday.

So, is Nvidia stock a buy or not?

That’s the real question, isn’t it? Wall Street’s confident Nvidia will “beat” on Q2 next week. It’s just worried that Nvidia will “miss” on guidance for Q3. Longer-term, though, is Nvidia stock a buy or isn’t it?

Here’s how I look at it, and I’ll keep this really simple:

Valued at 4.28 trillion dollars, earning nearly $77 billion in annual profit, and backing that up with roughly $72 billion in annual free cash flow, Nvidia stock costs about 55 times trailing earnings and about 59 times free cash flow. For Nvidia stock to be a clear-cut buy, I’d want to see the stock growing earnings at least 50% annually over the next five years.

The best that Wall Street analysts expect Nvidia to do, however, is 30% annual growth — even with nine out of 10 analysts polled saying Nvidia stock is a buy.

The math here isn’t hard. Nvidia stock is not a buy at this price — but it might be if it sells off after earnings.

]]> https://earlybirdsinvest.com/wall-street-analysts-expect-this-popular-ai-stock-could-face-challenges-ahead/feed/ 0 54822 Taiwan Exposes $72 Million Crypto Scam, 14 Face Indictment https://earlybirdsinvest.com/taiwan-exposes-72-million-crypto-scam-14-face-indictment/ https://earlybirdsinvest.com/taiwan-exposes-72-million-crypto-scam-14-face-indictment/#respond Fri, 22 Aug 2025 16:24:50 +0000 https://earlybirdsinvest.com/taiwan-exposes-72-million-crypto-scam-14-face-indictment/

Taiwan Shilin District Prosecutor’s Office has indicted fourteen individuals accused of running a cryptocurrency laundering scheme, according to a report by UDN, a local news outlet.

The investigation points to $71.9 million taken from 1,539 victims through a mix of storefront operations, fraudulent claims, and cash collection machines.

Prosecutors requested the seizure of NT$1.275 billion (about $39.8 million), along with 640,000 USDT
USDT


$0.9883

, undisclosed amounts of Bitcoin
BTC


$115,242.44

 and TRON
TRX


$0.3589

, $1.8 million in cash, and two luxury cars.

What is NEO in Crypto? Chinese Ethereum Explained (ANIMATED)

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What is NEO in Crypto? Chinese Ethereum Explained (ANIMATED)

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About $3.13 million in bank deposits has already been frozen, with more recoveries expected.

According to investigators, the accused collected money in cash, converted it into foreign currency, and used it to purchase USDT through BiXiang Technology, a local exchange.

The main suspect, Shi Qiren, was arrested in April together with thirteen associates. Reports indicate Shi could face up to 25 years in prison for leading the operation and for refusing to plead guilty. Prosecutors alleged that starting in 2024, Shi, his wife, and a business partner named Yang opened forty outlets under the names “CoinW” and “CoinThink Technology Co., Ltd”.

Officials claimed the group pretended to be the only company approved by Taiwan’s Financial Supervisory Commission, which helped them attract more than 1,500 customers. By combining franchise fees and machine collections, they allegedly gathered nearly $72 million.

On August 11, police in Phú Thọ Province, Vietnam, shut down the largest cryptocurrency scam recorded in the country. How? Read the full story.

]]> https://earlybirdsinvest.com/taiwan-exposes-72-million-crypto-scam-14-face-indictment/feed/ 0 54569 UK crypto investors face banking barriers amid regulatory tension https://earlybirdsinvest.com/uk-crypto-investors-face-banking-barriers-amid-regulatory-tension/ https://earlybirdsinvest.com/uk-crypto-investors-face-banking-barriers-amid-regulatory-tension/#respond Wed, 20 Aug 2025 20:00:21 +0000 https://earlybirdsinvest.com/uk-crypto-investors-face-banking-barriers-amid-regulatory-tension/

Four in 10 crypto investors in Britain reported that their banks blocked or slowed payments to digital asset platforms, highlighting growing tension between traditional finance and the country’s crypto sector.

The findings come from an IG Group survey of 500 active crypto users and 2,000 adults across the U.K., according to a CoinTelegraph report.

Crypto access challenges

Among those affected, nearly a third filed complaints, while more than a third switched banks after encountering restrictions.

Public opinion on the issue is split. According to the survey, 42% of adults said they opposed banks stepping in to restrict crypto payments, while about one-third supported the practice.

Although trading digital assets is legal in Britain, investors face regulatory and banking limits when moving money into the sector. Only companies registered with the Financial Conduct Authority (FCA) can offer crypto services in pounds, and rules prohibit retail buyers from using credit cards or other forms of borrowed capital.

Some high-street banks, including Chase UK and NatWest, have introduced additional curbs, citing fraud risks. Those restrictions have left many customers struggling to fund accounts with regulated exchanges.

Broader competition concerns

The survey results add to wider criticism of the U.K.’s cautious approach to digital assets. Former Chancellor of the Exchequer George Osborne, now an adviser to Coinbase, recently argued that Britain is falling behind other financial centers.

He highlighted the near absence of pound-backed stablecoins in a global market worth nearly $300 billion, with sterling-linked tokens making up just a fraction of the total supply.

Even so, regulators have made incremental changes. Beginning Oct. 8, the FCA will allow retail investors to trade crypto exchange-traded notes, reversing a ban imposed during a period of high volatility.

]]> https://earlybirdsinvest.com/uk-crypto-investors-face-banking-barriers-amid-regulatory-tension/feed/ 0 54245 US Bitcoin and Ethereum ETFs face $1 billion outflow amid market dip https://earlybirdsinvest.com/us-bitcoin-and-ethereum-etfs-face-1-billion-outflow-amid-market-dip/ https://earlybirdsinvest.com/us-bitcoin-and-ethereum-etfs-face-1-billion-outflow-amid-market-dip/#respond Wed, 20 Aug 2025 11:13:51 +0000 https://earlybirdsinvest.com/us-bitcoin-and-ethereum-etfs-face-1-billion-outflow-amid-market-dip/

Spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States recorded nearly $1 billion in combined outflows on Aug. 19, extending a current streak of investor withdrawals.

These heavy outflows can be linked to the recent price corrections in the crypto market.

According to CryptoSlate’s data, Bitcoin price retraced from recent highs to as low as $112,000 during the last 24 hours, which is its lowest level since early August.

Notably, Ethereum followed a similar path, dropping over 8% in the past week to trade at roughly $4,200 at the time of reporting.

Bitcoin and Ethereum ETF outflows

According to SoSoValue data, Bitcoin ETFs bore the brunt of the redemptions, losing $523 million in a single day.

Fidelity’s FBTC led the retreat with $246.9 million in outflows, while Grayscale’s GBTC shed $115.53 million.

Additional outflows came from Bitwise’s BITB, which saw a $87 million outflow, while Ark 21Shares’s ARKB fund recorded a $64 billion capital exit. Franklin Templeton’s EZET saw the least outflow on the day, with around $3 million leaving the fund.

Meanwhile, other Bitcoin ETF products like BlackRock’s IBIT and VanEck’s HODL held steady without registering inflows or outflows.

On the other hand, Ethereum ETFs saw similar pressure on the day, recording $422.3 million in redemptions. This marked the second-largest single-day withdrawal since spot Ether funds debuted earlier this year.

Fidelity’s FETH lost $156.32 million, followed by Grayscale’s two Ethereum products shedding more than $200 million. Bitwise’s ETHW also recorded significant outflows of over $39 million.

Other ETH financial instruments like BlackRock’s ETHA, VanEck’s ETHV, and 21Shares CETH funds lost $15 million.

Despite these significant reductions in their assets, the US-based crypto ETFs’ assets under management remain at record levels.

According to SoSo Value data, Bitcoin ETFs collectively manage $14.6 billion, while Ethereum ETFs maintain approximately $2.6 billion.

Crypto ETFs’ enthusiasm persists

Despite the significant redemptions in the BTC and ETH funds, attention is shifting toward the next wave of spot crypto ETFs.

Nate Geraci, president of NovaDius Wealth, argued that approvals for additional products are close, saying the “floodgates” could open within two months as a clearer regulatory framework takes shape.

He also pointed to possible authorization for staking within spot Ethereum ETFs, calling the remainder of the year “potentially wild” for the sector.

Notably, the SEC is currently reviewing applications for ETFs tied to XRP, Solana, Litecoin, and other prominent tokens.

Bloomberg ETF Analysts James Seyffart and Eric Balchunas have projected a high likelihood of over 90% of these products being approved, citing the agency’s current pro-crypto leadership.

Mentioned in this article
]]> https://earlybirdsinvest.com/us-bitcoin-and-ethereum-etfs-face-1-billion-outflow-amid-market-dip/feed/ 0 54174 US Ethereum ETFs face second-largest outflow of $196.6 million in a day https://earlybirdsinvest.com/us-ethereum-etfs-face-second-largest-outflow-of-196-6-million-in-a-day/ https://earlybirdsinvest.com/us-ethereum-etfs-face-second-largest-outflow-of-196-6-million-in-a-day/#respond Tue, 19 Aug 2025 09:03:55 +0000 https://earlybirdsinvest.com/us-ethereum-etfs-face-second-largest-outflow-of-196-6-million-in-a-day/

US spot Ethereum exchange-traded funds (ETFs) saw heavy redemptions on Aug. 18, with investors pulling $196.6 million in a single day.

Data from SoSoValue showed that this was the second-largest daily outflow since the products debuted and the fourth outflow this month.

According to the data, most of the day’s losses came from the two largest issuers. BlackRock’s ETHA accounted for the biggest drop, with around 20,000 ETH, or $86.9 million, leaving the product. Fidelity’s FETH trailed closely, seeing redemptions worth $78.4 million.

Ethereum ETFs Flow
Ethereum ETFs Flow in August (Source: SoSo Value)

Meanwhile, other issuers also recorded outflows, though on a smaller scale.

Grayscale’s Ethereum fund lost $18.7 million, Franklin Templeton’s EZET shed $6.6 million, VanEck’s ETHV saw $4.8 million in withdrawals, and Bitwise’s ETHW dropped by about $1 million.

The setback comes after an eight-day inflow streak during which investors added more than $3.7 billion to Ethereum ETFs.

However, despite the latest reversal, overall market momentum remains firmly positive.

According to SoSoValue data, cumulative net inflows into US Ethereum ETFs now exceed $12 billion, most of which have arrived over the past two months as institutional adoption has accelerated.

Together, the funds hold about $27.7 billion in assets under management, representing 5.34% of Ethereum’s total market capitalization.

]]> https://earlybirdsinvest.com/us-ethereum-etfs-face-second-largest-outflow-of-196-6-million-in-a-day/feed/ 0 53970 Solana ETFs Face SEC Delay, Decision Postponed to October https://earlybirdsinvest.com/solana-etfs-face-sec-delay-decision-postponed-to-october/ https://earlybirdsinvest.com/solana-etfs-face-sec-delay-decision-postponed-to-october/#respond Fri, 15 Aug 2025 05:28:00 +0000 https://earlybirdsinvest.com/solana-etfs-face-sec-delay-decision-postponed-to-october/

Author

Sujha Sundararajan

Author

Sujha Sundararajan

About Author

Sujha has been recognised as 🟣 Women In Crypto 2024 🟣 by BeInCrypto for her leadership in crypto journalism.

Last updated: 


Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas – from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Solana ETFs Face SEC Delay, Decision Postponed to October

The US regulator has extended its review period for two Solana exchange-traded funds (ETFs) filings to October 16, 2025.

The SEC said that the extension allows “sufficient time to consider” Solana ETF proposals from Bitwise and 21Shares, which were originally due on August 17.

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider,” the Thursday filing read.

The maximum 60-day extension authority will be the final deadline for approval or denial.

Further, the agency has also delayed proposals from Canary Funds and Marinade Finance, Bloomberg ETF analyst James Seyffart noted.

“Suspect we won’t see too many more of these,” he wrote on X. “We’re expecting standard spot Solana ETFs to be approved by mid-October at the latest.”

Solana ETFs Approval Likely in October?

Despite the SEC’s delay on altcoin ETF decisions, Nate Geraci, President of The ETF Store, is optimistic that a broad array of crypto ETFs will hit markets soon.

Speaking to CNBC, he explained how regulatory tailwinds and record inflows into Bitcoin and Ether funds are driving altcoin momentum. He said that the new rules would trigger a flood of product launches in the coming months.

Andrejs Balans, Risk Manager at YouHodler, told Cryptonews that aside from Bitcoin and Ethereum, projects like Solana and Polkadot have attracted institutional interest, but are still considered experimental.

“Only a few of these are likely to survive long enough to gain serious attention from major capital allocators.”

SOL Surged Past $200, Indicates Strong Uptrend

Solana price rose to $209 on Thursday, amid soaring discussions over the potential Solana ETF launch in the US. Per CoinMarketCap, the 24-hour low and high are $195.26 and $209.67, respectively.

CoinGlass data noted massive buying in the derivatives market. Open interest (OI) has increased near its recent record of $12, which indicates that traders are positioning for the continuation of this uptrend.

Additionally, crypto liquidations in the past 24 hours have surged to $800 million, including $50 million worth of SOL long positions.


]]> https://earlybirdsinvest.com/solana-etfs-face-sec-delay-decision-postponed-to-october/feed/ 0 53273 Bithumb and Upbit Face Heat Over High-Stakes Crypto Lending https://earlybirdsinvest.com/bithumb-and-upbit-face-heat-over-high-stakes-crypto-lending/ https://earlybirdsinvest.com/bithumb-and-upbit-face-heat-over-high-stakes-crypto-lending/#respond Thu, 31 Jul 2025 16:28:50 +0000 https://earlybirdsinvest.com/bithumb-and-upbit-face-heat-over-high-stakes-crypto-lending/

South Korean regulators have stepped in after Bithumb



$1.15B

and Upbit



$2.26B

 introduced new loan and trading features that raised legal and investor safety concerns.

According to a July 30 report by Korea JoongAng Daily, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) called a meeting with the country’s five largest exchanges on July 25 to discuss the issue.

On July 4, Bithumb introduced a feature that offers users the option to borrow up to four times the value of their crypto assets. The service supported 10 digital assets, including Bitcoin
BTC


$117,726.55

, Ethereum
ETH


$3,770.90

, and USDT
USDT


$0.9934

.

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Upbit launched a similar feature, though it only applied to XRP
XRP


$3.09

, Bitcoin, and USDT.

However, this kind of setup has raised red flags for financial authorities, as it resembles risky practices usually restricted in traditional finance.

After the meeting with regulators, Upbit decided to suspend its Tether lending option. The exchange said it would review the service to ensure it complies with Korean law, which treats some lending products as regulated financial activities.

Bithumb later adjusted its system but kept its four-times borrowing limit.

Officials are especially concerned that these products allow for short-selling and high-risk trades without clear protections for users.

They also noted that without clear legal guidelines, lending backed by digital assets could fall under existing rules for loan services, which would require licenses and stricter oversight.

Meanwhile, the Bank of Korea (BOK) recently introduced a new Virtual Asset Team. What is the group’s role? Read the full story.

Aaron S. Editor-In-Chief

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

]]> https://earlybirdsinvest.com/bithumb-and-upbit-face-heat-over-high-stakes-crypto-lending/feed/ 0 50710 MIT Brothers Must Face Trial Over $25 Million Ethereum Bot Exploit https://earlybirdsinvest.com/mit-brothers-must-face-trial-over-25-million-ethereum-bot-exploit/ https://earlybirdsinvest.com/mit-brothers-must-face-trial-over-25-million-ethereum-bot-exploit/#respond Thu, 24 Jul 2025 14:33:16 +0000 https://earlybirdsinvest.com/mit-brothers-must-face-trial-over-25-million-ethereum-bot-exploit/

Anton and James Peraire-Bueno, both graduates of MIT, will have to defend themselves in court after a judge declined to dismiss charges tied to a major crypto theft on Ethereum
ETH


$3,636.18

.

The brothers are accused of using a technical strategy to take $25 million worth of crypto by targeting trading bots on the Ethereum network.

On July 23, US District Judge Jessica Clarke ruled that the details in the indictment were enough to support claims of wire fraud, even though the method used was new.

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According to prosecutors, the pair exploited a system used by MEV bots. These bots scan upcoming blockchain transactions and look for ways to make a profit, usually by getting ahead of other trades.

The indictment describes how the brothers planned and carried out a four-part strategy they called “bait, block, search, and propagation”. They allegedly used this process to trick the bots, delay other transactions, and transfer money in their favor.

The brothers set up 16 Ethereum validator accounts using over 500 ETH. These validators gave them more control over the transaction order and helped them complete the entire operation in just 12 seconds.

Anton and James argued that what they did was allowed by Ethereum’s rules and claimed the bots were already using unfair trading tactics.

Their lawyers said the wire fraud law did not apply to this type of case. However, Judge Clarke stated that the law covered the kind of conduct described, regardless of the tools used to carry it out.

A Denver couple recently faced 40 charges after raising $3.4 million from their faith-based community through a crypto token. How did the case unfold? Read the full story.

Aaron S. Editor-In-Chief

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

]]> https://earlybirdsinvest.com/mit-brothers-must-face-trial-over-25-million-ethereum-bot-exploit/feed/ 0 49407 MIT Brothers Who Exploited MEV Bots for $25M Must Face Trial, Judge Rules https://earlybirdsinvest.com/mit-brothers-who-exploited-mev-bots-for-25m-must-face-trial-judge-rules/ https://earlybirdsinvest.com/mit-brothers-who-exploited-mev-bots-for-25m-must-face-trial-judge-rules/#respond Thu, 24 Jul 2025 10:16:59 +0000 https://earlybirdsinvest.com/mit-brothers-who-exploited-mev-bots-for-25m-must-face-trial-judge-rules/

Crypto Journalist

Anas Hassan

Crypto Journalist

Anas Hassan

About Author

Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.

Last updated: 


Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas – from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

MIT Brothers Who Exploited MEV Bots for $25M Must Face Trial, Judge Rules

Two MIT-educated brothers accused of orchestrating the largest MEV bot exploitation in cryptocurrency history will face trial after a federal judge rejected their attempts to dismiss fraud and money laundering charges.

Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, allegedly stole $25 million in cryptocurrency within 12 seconds by manipulating Ethereum’s MEV-Boost protocol in April 2023.

Technical Error or Deliberate Exploit?

The brothers meticulously planned their operation over several months, studying trading patterns of Ethereum bots and establishing shell companies.

They created 16 Ethereum validators using approximately $880,000 in cryptocurrency, then executed what prosecutors called a “bait, block, search, and propagation” scheme targeting three victim traders operating MEV bots.

Their exploit involved proposing “lure transactions” to induce victim traders’ bots to purchase illiquid cryptocurrencies worth $25 million.

The brothers then sent a false signature to the relay system, gaining premature access to private transaction data.

They replaced the lure transactions with their own trades, selling the illiquid tokens and rendering the victims’ holdings worthless.

Following the theft, the brothers laundered the stolen funds through complex transactions across multiple addresses and foreign exchanges with limited KYC requirements.

They converted the cryptocurrency to DAI stablecoin, then to USDC, before transferring $20 million to U.S. dollar accounts. Foreign law enforcement froze $3 million of the stolen funds.

The case comes amid rising concerns about MEV exploitation across blockchain networks.

Recent incidents include a $2 million insider attack on Bedrock’s UniBTC protocol by a former Fuzzland employee and a notorious Solana MEV bot named “arsc” that accumulated $30 million in two months through sandwich attacks.

Brothers’ Legal Battle Reaches Critical Juncture

Federal prosecutors arrested the Peraire-Bueno brothers on May 15, 2024, with Anton taken into custody in Boston and James in New York.

U.S. Attorney Damian Williams described the scheme as meticulously planned, noting how the brothers “used their specialized skills and education to tamper with and manipulate the protocols relied upon by millions of Ethereum users.“

The brothers face charges of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering.

Each charge carries a potential 20-year prison sentence. A federal judge scheduled their trial for October 14, 2025, after denying their motions to dismiss the indictment.

The court found the wire fraud charges legally sufficient, determining that the brothers’ lure transactions and false signatures constituted material misrepresentations.

The judge ruled that the $25 million in stolen cryptocurrency represented a traditionally recognized property interest, not merely contingent profits.

IRS Criminal Investigation’s New York Cyber Unit traced the stolen funds back to the brothers despite their sophisticated laundering efforts.

Special Agent Thomas Fattorusso noted that investigators “simply followed the money” using cutting-edge technology and traditional investigative methods.

Growing MEV Threat Challenges Blockchain Scalability

MEV exploitation has emerged as a dominant threat to blockchain scalability, according to recent research from Flashbots.

According to a report covered by Cryptonews in June, MEV bots now consume 40% of all blockspace on Solana and over half of the gas usage on Ethereum rollups, such as Base and OP Mainnet.

The Peraire-Bueno case represents the first criminal prosecution of MEV manipulation; however, similar exploits continue to occur across various networks.

A Ronin Network breach in August 2024 initially appeared malicious but was later revealed to be a white-hat operation, with the hacker returning $9.8 million after discovering a vulnerability in the bridge.

Recent data from EigenPhi shows more than 81,000 users fell victim to sandwich attacks in the last 30 days alone.

MIT Brothers Who Exploited MEV Bots for $25M Must Face Trial, Judge Rules

These attacks now account for nearly $1 billion in weekly trading volume on Ethereum-based decentralized exchanges.

Flashbots has proposed new frameworks to address MEV abuse, including explicit MEV auctions and programmable privacy using Trusted Execution Environments.

The organization argues that current spam from MEV bots creates artificial fee floors, undermining the promise of near-zero transaction costs on scaled networks.

The brothers’ trial, scheduled for October, is likely to set precedents for future MEV-related prosecutions, as it isn’t technically precise whether it can be attributed to an exploit of a technical oversight.


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