Virgil Griffith, one of the developers of the Ethereum Foundation, pleaded guilty to conspiring with North Korea. The News It was confirmed earlier this week, through the US Department of Justice.
The cryptocurrency expert acknowledged having violated the Law of International Emergency Economic Powers (IEEPA); therefore, he is now waiting for a final sentence. However, this will be known in January 2022. His decision was surprising, since it was confirmed just when both the defense and the prosecution were preparing the trial. In fact, the jury election ended on the same Monday that the defendant assumed the conspiracy charge.
According to the US justice, Virgil Griffith conspired with North Korea by providing “technical advice on the use of cryptocurrencies and technology blockchain to evade sanctions “.
Virgil Griffith and the North Korean conference that seals his fate
Virgil Griffith’s troubles began in November 2019. At that time is arrested for participating in a cryptocurrency conference held in North Korea in April of the same year. However, the United States was already in his wake due to its alleged previous ties with the controversial Asian nation.
“Griffith, […] began formulating plans as early as 2018 to serve people in the Democratic People’s Republic of Korea (DPRK) by developing and financing a cryptocurrency infrastructure there, including cryptocurrency mining. ” mentions American justice; and adds: “Virgil Griffith knew that North Korea could use these services to evade and avoid US sanctions, and to finance its nuclear weapons program and other illicit activities.”
CoinDesk explains that the Ethereum Foundation member was released on bail in 2020. However, he is currently in prison for attempting to violate the terms of probation. It is worth noting that while Virgil Griffith is a US citizen, you were residing in Singapore at the time of your arrest.
According to the United States Department of Justice, the defendant knew what kind of punishment he was exposing himself to by participating in the cryptocurrency conference in North Korea that, after all, seems to have sealed his fate. The official report indicates that the State Department denied permission to travel to the Asian country, but did it anyway.
At the DPRK Cryptocurrency Conference, Virgil Griffith and his co-conspirators provided instructions on how North Korea could use the technology. blockchain and cryptocurrencies to launder money and evade sanctions. The presentations […] were approved by North Korean officials and focused, among other things, on how the technology blockchain, like “smart contracts”, could be used to benefit the DPRK, including in nuclear weapons negotiations with the United States.
United States Department of Justice
The high cost of the conspiracy with North Korea
But the indictment against Virgil Griffith for conspiring to violate the Emergency International Economic Powers Act is not limited to his participation in the cryptocurrency conference. Apparently, the Ethereum developer also answered specific questions on the subject, even from representatives of the North Korean government.
In addition, the United States ensures that the defendant set up cryptocurrency exchange plans between North and South Korea, something also prohibited. And it even indicates that would have tried to “recruit” other US citizens to offer “similar services” to other people in the Asian nation.
For now, from the Ethereum Foundation they have not made statements regarding the situation of Virgil Griffith; It is worth noting that it was part of it since 2016. The conspiracy charge for violating the IEEPA can cost the developer a maximum penalty of 20 years in prison.