North Korea’s Sanctions Evasion Leads to U.S. Crypto Developer’s Arrest
Datum: 16.01.2024
CryptoChipy Ltd continues to monitor the latest developments in the crypto space. In this update, the focus is on North Korea’s efforts to bypass international sanctions and the latest update on the conviction of a U.S. cryptocurrency developer. Virgil Griffith, the former Ethereum developer, is set to be sentenced in New York after admitting to a conspiracy charge involving the violation of international sanctions against North Korea. Griffith is facing up to six and a half years in prison. The U.S. prosecution has accused him of teaching North Korean officials how to bypass sanctions. Prosecutors have suggested a fine of up to one million dollars as part of his sentencing. Griffith opted for a plea deal, avoiding a jury trial that might have resulted in a harsher sentence. The court will now deliberate on his sentence, taking into account Griffith's intentions and whether he deserves a lenient judgment.

Support for Griffith During His Trial

Friends, family, and former colleagues of Griffith have submitted letters to the U.S. judge in an effort to portray him in a positive light. These letters aim to highlight Griffith’s good character and reduce the severity of his sentence. Vitalik Buterin, among others, personally supported Griffith, emphasizing his open-mindedness and positive attitude. The letters aim to convince the judge to issue a more lenient judgment based on Griffith’s character and intentions.

Evidence of Sanctions Evasion Presented by the Prosecution

The prosecution has questioned Griffith’s motives for his trip to Pyongyang, the capital of North Korea. They argue that his actions were serious, as they posed a direct threat to public safety by attempting to circumvent sanctions. The prosecution has presented evidence, including texts and emails between Griffith and others, where he discussed setting up an Ethereum node within North Korea.

Further evidence includes Griffith’s statements in which he claimed that sanctions could be bypassed, along with a document containing a transcript of his remarks at a conference and an image of him wearing a North Korean suit. He wrote on a whiteboard: “No sanctions.”

Griffith reportedly told others he could provide North Korea with a blockchain system that would facilitate processes and payments that the U.S. could not block.

His defense team argues that this information was public and that he did not have the intention to bypass sanctions. He maintains that his motives were pure, but the evidence suggests otherwise, indicating he intended to break the law and seek leniency later.

He pled guilty to the conspiracy charge in an attempt to receive a reduced sentence for violating international sanctions against North Korea.

North Korea’s Interest in Cryptocurrencies: Griffith’s Role in the Conspiracy

North Korea has shown a strong interest in hacking its way into the cryptocurrency world. Griffith explained his technology, which could facilitate money laundering and circumvent sanctions. North Korean officials saw this as a way to gain leverage in nuclear arms negotiations with the United States. According to reports from CryptoChipy, North Korean hackers have stolen millions in cryptocurrency.

Griffith’s visit to North Korea confirmed his intentions, as he went to the conference despite being denied permission by the U.S. government. The prosecution argued that Griffith’s actions were aimed at helping North Korea evade sanctions, particularly in relation to their nuclear weapons program. Griffith’s statements about blockchain being open and accessible, including his claim that North Korea could not be excluded from it, indicate his clear intent to assist in evading sanctions.

The evidence gathered substantiates the claims that Griffith’s visit to North Korea was unauthorized, and it shows how he instructed others on using cryptocurrency technology to bypass sanctions. The prosecution ensured they had sufficient evidence to proceed with Griffith’s prosecution. CryptoChipy Ltd has more insights into how Griffith exploited cryptocurrency networks for his ulterior motives.

CryptoChipy learned that Griffith’s crime carries a maximum sentence of twenty years. However, his plea agreement with federal prosecutors has reduced his sentence to 63 months, meaning he will serve at least five years in prison for helping North Korea evade sanctions using cryptocurrency.