A prominent Ethereum developer has been sentenced to more than five years in prison after admitting to aiding North Korea in evading sanctions.
Virgil Griffith, 39, had initially pleaded not guilty following his arrest at Los Angeles International Airport in November 2019. However, he later changed his plea to guilty.
According to the Department of Justice (DoJ), Griffith conspired to provide technical advice to North Korea on how to bypass sanctions using cryptocurrency and blockchain technology. He began devising plans to support the Kim Jong-un regime in 2018, which included developing and financing cryptocurrency infrastructure in the country, such as crypto mining capabilities.
Despite being prohibited from traveling to North Korea by the State Department, Griffith visited the capital in 2019 to speak at the Pyongyang Blockchain and Cryptocurrency Conference. During the conference, he provided detailed instructions on how to launder money and evade sanctions using cryptocurrency, as well as how blockchain smart contracts could be utilized in nuclear weapons negotiations with the US.
In addition to his own efforts, Griffith also attempted to recruit others in the US to assist North Korea and sought to facilitate introductions between North Korean officials and cryptocurrency and blockchain service providers.
US attorney Damian Williams emphasized the national security threat posed by North Korea and the importance of enforcing sanctions to prevent the country from developing nuclear weapons. Williams stated, “Mr. Griffith admitted in court to taking actions to evade sanctions, which are in place to prevent the DPRK from building a nuclear weapon. Justice has been served with the sentence handed down today.”
As a result of his actions, Griffith has been sentenced to 63 months in prison, followed by three years of supervised release, and has been fined $100,000.
The case serves as a stark reminder of the serious consequences of violating sanctions and highlights the need for individuals to adhere to legal and ethical standards in the cryptocurrency and blockchain industry.