A Former Ethereum Developer Pleads Guilty to Assisting North Korea with Cryptocurrency
In a shocking turn of events, a former Ethereum developer has pleaded guilty to aiding North Korea in evading US sanctions by providing technical advice on cryptocurrency. Virgil Griffith, a Singapore resident and US citizen aged 38, admitted to conspiring to violate the International Emergency Economic Powers Act (IEEPA), a charge that carries a maximum sentence of 20 years in prison.
Background
The Department of Justice (DoJ) revealed that Griffith had been involved in developing and funding cryptocurrency infrastructure in North Korea since 2018. This endeavor was aimed at helping the isolated nation bypass sanctions and finance its nuclear weapons program through the mining of digital coins.
Griffith’s involvement escalated in April of the following year when he traveled to Pyongyang to deliver a presentation alongside unidentified co-conspirators. During this presentation, he elaborated on how cryptocurrency could be utilized to evade sanctions and how smart contracts could play a role in negotiating weapons deals with the US. It’s worth noting that Griffith had been denied permission by the State Department to visit North Korea.
Legal Ramifications
Despite his initial plea of not guilty in January 2020 following his arrest at Los Angeles International Airport, Griffith eventually admitted to his wrongdoing. The DoJ also highlighted his attempts to recruit other US citizens for his illicit activities. Surprisingly, no efforts were made during this period to seek approval from the Treasury’s Office of Foreign Assets Control (OFAC) for engaging in transactions with North Korea.
In a concerning development, it was disclosed in August of this year that unauthorized FBI personnel had accessed data extracted from Griffith’s social media accounts due to a glitch in the Palantir analytics software they were employing. Fortunately, this incident did not impact the ongoing investigation or legal proceedings against Griffith.
Repercussions
US attorney Audrey Strauss expressed grave concern over Griffith’s actions, emphasizing the threat they posed to national security. She stated, “Griffith jeopardized the national security of the United States by undermining the sanctions that both Congress and the President have enacted to place maximum pressure on the threat posed by North Korea’s treacherous regime.”
As the case unfolds, it serves as a stark reminder of the implications of aiding adversarial regimes and the importance of upholding international sanctions. The cryptocurrency industry, already under scrutiny for its potential misuse in illicit activities, must remain vigilant in preventing such incidents from recurring.