Former Ethereum developer Virgil Griffith has been sentenced to 63 months in prison and fined $100,000 for violating U.S. sanctions on North Korea. The sentencing by U.S. District Judge Kevin Castel in the Southern District of New York came after Griffith admitted to conspiring to violate the International Emergency Economic Powers Act (IEEPA).
In April 2019, despite being denied permission by U.S. authorities, Griffith traveled to North Korea and presented at the Pyongyang Blockchain and Cryptocurrency Conference. There, he explained how blockchain technology could be used to evade sanctions and launder money, even suggesting its use in nuclear negotiations with the U.S. His actions were deemed a deliberate attempt to violate sanctions, with Judge Castel emphasizing Griffith’s “willful intent” to educate others on evading sanctions.
Griffith’s defense argued that his obsessive-compulsive and narcissistic personality disorders contributed to his irrational behavior. They claimed these conditions fueled his obsession with North Korea and led him to ignore warnings from friends, family, and the government. Despite expressing remorse and stating he had been “cured” of his obsession, the court was not convinced of his regret, suggesting Griffith sought admiration for defying sanctions.
Griffith was arrested in November 2019, shortly after returning from the conference, and had several interactions with the FBI before his arrest. He had also violated his bail conditions in May 2021 by attempting to access his Coinbase account, leading to concerns about his potential flight risk due to the substantial value of his cryptocurrency holdings.
North Korea’s use of cryptocurrency to evade sanctions and conduct cybercrimes remains a significant issue, with reports indicating that the country stole nearly $400 million through hacks and ransomware in 2021 alone
