Virgil Griffith, a programmer who worked extensively on the Ethereum blockchain development has been sentenced to 63 months in prison along with a fine of US$100,000. These charges come after violations of international sanctions against the Democratic People’s Republic of Korea (DPRK) in 2019.
The ‘Pyongyang Blockchain and Cryptocurrency Conference’ was held in North Korea’s capital, where Griffith had explained the benefits of blockchain. The Department of Justice (DOJ) notes that “Griffith knew that the DPRK could use these services to evade and avoid U.S. sanctions, and to fund its nuclear weapons program and other illicit activities.”
“After the DPRK Cryptocurrency Conference, Griffith pursued plans to facilitate the exchange of cryptocurrency between the DPRK and South Korea, despite knowing that assisting with such an exchange would violate sanctions against the DPRK.” states the DOJ’s Office of Public Affairs. “At no time did Griffith obtain permission from OFAC to provide goods, services or technology to the DPRK.”
Griffith pleaded guilty to conspiring to assist North Korea in evading sanctions, this is a direct violation of the International Emergency Economic Powers Act (IEEPA). Sentences of up to 20 years can be handed out following acts against the IEEPA, although Griffith’s sentence was dropped to 63-78 months.
It is worth noting that nuclear weapons within North Korea have been being funded from proceeds from cyberattacks on various international crypto exchanges per a report from Reuters that cited the United Nations. According to Chainalysis’ blockchain forensics over US$400M in crypto was stolen by various North Korean cyber attacks.
