I'm no big fan of the SCI conference but virtually none of the conferences in computer science fully referee their submissions. A clever student could write a paper with a bogus proof and have a chance of that paper being accepted at a major conference like STOC. I would consider someone who intentionally submits a bogus paper to STOC guilty of academic fraud. Why are these MIT students any different?
Students make mistakes and we should tell them what they did was wrong instead of just glorifying such activities.