Ethereum Developer Sentenced to 5 Years for Helping North Korea Evade Sanctions
A prominent Ethereum developer has been handed a five-year prison sentence after admitting to aiding North Korea in bypassing international sanctions. Virgil Griffith, 39, had initially pleaded not guilty but changed his plea last year, leading to his sentencing.
Background
Griffith was arrested at Los Angeles International Airport in November 2019 and charged with conspiracy to provide technical guidance to North Korea on utilizing cryptocurrency and blockchain technology to evade sanctions. The Department of Justice (DoJ) revealed that Griffith had been planning to support the Kim Jong-un regime since 2018, including assisting in the development of cryptocurrency infrastructure within the country.
Illegal Activities
During a visit to Pyongyang in 2019 for the Pyongyang Blockchain and Cryptocurrency Conference, Griffith shared strategies on money laundering and sanction evasion using cryptocurrency. He also discussed how blockchain smart contracts could be leveraged in nuclear negotiations with the US. Additionally, Griffith attempted to enlist others in the US to participate in similar activities and connect North Korean officials with cryptocurrency and blockchain service providers.
Legal Consequences
US Attorney Damian Williams emphasized the severity of Griffith’s actions, citing the national security threat posed by North Korea and the importance of upholding sanctions to prevent nuclear proliferation. Griffith admitted to evading sanctions and was sentenced to 63 months in prison, followed by three years of supervised release. He was also fined $100,000.
The verdict serves as a reminder of the legal implications of engaging in activities that undermine international sanctions and national security. The case highlights the need for vigilance in monitoring and enforcing regulations within the cryptocurrency and blockchain space to prevent illicit activities.