American Citizen Arrested for Educating North Korea on Blockchain and Crypto

Published at: Nov. 30, 2019

Today United States prosecutors announced the arrest of Virgil Griffith, who allegedly traveled to the Democratic People’s Republic of Korea (DPRK) to deliver a presentation on how to use cryptocurrencies and blockchain technology to circumvent sanctions.

According to the November 29 announcement, the 36-year-old Griffith was arrested at the Los Angeles International Airport, and will be charged with conspiring to violate the International Emergency Economic Powers Act (IEEPA). The charges carry a maximum term of 20 years in prison. U.S. Attorney Geoffrey S. Berman stated:

“As alleged, Virgil Griffith provided highly technical information to North Korea, knowing that this information could be used to help North Korea launder money and evade sanctions. In allegedly doing so, Griffith jeopardized the sanctions that both Congress and the president have enacted to place maximum pressure on North Korea’s dangerous regime.”

The IEEPA prohibits any U.S. citizens from exporting any goods, services, or technology to the DPRK without a license from the Department of the Treasury, Office of Foreign Assets Control.

Griffith, a U.S. citizen living in Singapore, was previously denied permission to travel to the DPRK by the U.S. Department of State. Griffith went against the decision and presented at the DPRK Cryptocurrency Conference, violating the U.S. sanctions against the DPRK. FBI Assistant Director-in-Charge William F. Sweeney Jr. said:

“There are deliberate reasons sanctions have been levied on North Korea. The country and its leader pose a literal threat to our national security and that of our allies. Mr. Griffith allegedly traveled to North Korea without permission from the federal government, and with the knowledge of what he was doing was against the law. We cannot allow anyone to evade sanctions, because the consequences of North Korea obtaining funding, technology, and information to further its desire to build nuclear weapons put the world at risk. It’s even more egregious that a U.S. citizen allegedly chose to aid our adversary.”

North Korea trying to evade sanctions

North Korea is reportedly in the early stages of developing a cryptocurrency to help the DPRK evade international sanctions and find a way around “the U.S.-dominated global financial system.”

Alejandro Cao de Benos, the official in charge of North Korea’s crypto conferences, said at the time that the digital currency will be similar to Bitcoin (BTC) but that they are still in the very early stages in the creation of the token and that there are “no plans to digitize the [North Korean] won for now.”

Tags
Blockchain
United States
Cryptocurrencies
Sanctions
North Korea
Related Posts
Proactive sanctions can help spare the ecosystem: Chainalysis exec
As many countries, entities and even individuals face international sanctions, the crypto industry seeks to find its place among increasing regulations. Digital currencies have often been mentioned as an avenue for those subject to sanctions to divert them, such as in the recent case of Russia. In such instances, exchanges and other industry players need to understand where they stand compliance-wise. Research out of Harvard even suggested that central banks can use Bitcoin (BTC) to fight off sanctions. Speaking to Cointelegraph's managing editor Alex Cohen at the Israel Crypto Conference, Chainalysis head of sanctions Andrew Fierman said sanctions are nuanced …
Blockchain / Dec. 7, 2022
US Grand Jury Indicts Ethereum Researcher Virgil Griffith Over North Korea Trip
The United States District Court for the Southern District of New York has filed an indictment against Ethereum Foundation researcher Virgil Griffith on Jan. 7. According to a court filing on Jan. 7, a federal grand jury charged Griffith with conspiracy to violate the International Emergency Economic Powers Act. The act was introduced in 1977 and is a U.S. federal law authorizing the president to regulate international commerce in case of a national emergency coming from outside the country. Griffith is accused of knowingly and willfully having conspired to violate the measures taken against the Democratic People’s Republic of Korea …
Blockchain / Jan. 9, 2020
North Korea Denies It Stole $2 Billion From Crypto Exchanges and Banks
North Korea is denying accusations of obtaining $2 billion through hacking banks and cryptocurrency exchanges. North Korea accuses the United States of spreading rumours On Sept. 1, the country’s official state media, the Korea Central News Agency (KCNA), denied allegations of massive theft by North Korean agents. As Cointelegraph previously reported, the United Nations Security Council North Korea sanctions committee said that “Democratic People’s Republic of Korea cyber actors were raising money for its WMD (weapons of mass destruction) programs, with total proceeds to date estimated at up to two billion US dollars.” In response, KCNA cited a statement from …
Blockchain / Sept. 1, 2019
North Korea ‘Increasingly’ Uses Crypto to Avoid US Sanctions, Experts Claim
North Korea is "increasingly" using cryptocurrencies to evade sanctions imposed by the U.S., according to two Washington-based experts cited by news site Asia Times on September 24. Lourdes Miranda and Ross Delston sent a joint response to an Asia Times' inquiry regarding the use of crypto by the government of North Korea (DPRK). Miranda is an independent financial analyst and a financial crimes investigator, and Delston is an independent attorney and expert witness in money laundering cases. Both experts have claimed that the country is successfully trading existing cryptocurrencies, and is attempting to create one of its own, despite current …
Blockchain / Sept. 25, 2018
US Treasury redesignates Tornado Cash sanctions, citing North Korea nuclear weapons program
The United States Treasury Department's Office of Foreign Asset Control, or OFAC, has amended the sanctions on cryptocurrency mixer Tornado Cash in addition to including two individuals involved in “transportation and procurement activities” for the Democratic People’s Republic of Korea in its list of Specially Designated Nationals. In a Nov. 8 announcement, the Department of the Treasury said it had “delisted and simultaneously redesignated” Tornado Cash in addition to taking into account activities conducted by North Korean nationals Ri Sok and Yan Zhiyong in its basis for sanctions. The government department reiterated its claims that the crypto mixer was involved …
Regulation / Nov. 8, 2022