More

    Ethereum Dev Arrested For Advising North Korea to Evade Sanctions With Crypto And Blockchain Tech

    The flexibility and versatility of cryptocurrency has led many countries to allow it within their borders. While conferences in this industry are common events around the world, it seems that citizen in the United States need to be much more careful who they educate on crypto assets and blockchain, as Virgil Griffith has learned.

    • The International Emergency Economic Powers Act (IEEPA) prohibits the release of goods, services, or technology without prior permission from the federal government.
    • If convicted, Virgil Griffith could potentially face 20 years behind bars.

    Cryptocurrency was created as a decentralized method of payment that could be used around the world. It isn’t ruled by any single entity, but there are many countries that have made the assets illegal to use. In the United States, the legal digital currency is used for trading, investing, and even purchases with some merchants. However, one of the uses that it should never be applied to is to evade sanctions, which is exactly what Ethereum Foundation member and ETH Developer Virgil Griffith did, and he’s just been caught.

    According to a press release on November 29th from the United States Department of Justice, Griffith is a US citizen, and he recently traveled to North Korea, delivering a presentation regarding cryptocurrency. Ordinarily, this type of presentation would not break any laws, but Griffith was applying this knowledge to teach the North Korean public to use the fintech to evade sanctions. This action violates the International Emergency Economic Powers Act (IEEPA), leading to Griffith’s arrest at the Los Angeles International Airport on Thanksgiving Day by the FBI and the Department of Justice. Now, Griffith is scheduled to face federal court, where he stands to receive a maximum sentence of 20 years, if convicted.

    “As alleged, Virgil Griffith provided highly technical information to North Korea, knowing that this information could be used to help North Korea launder money and evade sanctions,” said U.S. Attorney Geoffrey S. Berman. He added,

    “In allegedly doing so, Griffith jeopardized the sanctions that both Congress and the president have enacted to place maximum pressure on North Korea’s dangerous regime.”

    John Demers, the Assistant Attorney General, also commented in the press release, stating that Griffith had received warnings not to go to North Korea before he took his trip. However, upon entering the country, Demers states that Griffith “taught his audience how to use blockchain technology to evade sanctions.”

    William F. Sweeney Jr., the Assistant Director-in-Charge of the FBI, added that the sanctions against North Korea were established are due to “deliberate reasons,” as the country and its leadership are “a literal threat to our national security and that of our allies.” He spoke about the allegations against Griffith, stating that the citizen had not received permission to make his trek to North Korea, as his information could essentially “put the world at risk.” Sweeney called Griffith’s actions “egregious.”

    The complaint in the Manhattan states that Griffith’s travel arrangements were to both attend and present at an event called the Pyongyang Blockchain and Cryptocurrency Conference. Griffith was told not to travel to the event, but he attended and presented anyway, where he discussed the use of this technology for the purpose of laundering money and evading sanctions. After the conference took place, the complaint states that Griffith had been working on plans to allow for crypto exchanges to take place between North Korea and South Korea, while also announcing plans to give up his citizenship in the United States. Griffith, age 36, lives in Singapore and is a citizen of the United States still, which has led the authorities to charge him with violation of the IEEPA.

    However, not everyone believes that Griffith should be charged. According to Decrypt, a friend of Griffith’s named Wills Bentley de Vogeleare stated that the federal agents are overreacting in the arrest. He adds that Griffith’s presence wasn’t meant to show North Korean citizens how to evade sanctions, “but teach them about Ethereum, just like he’s done at many similar conferences around the world.”

    The IEEPA and Executive Order 13466 state that no citizen of the United States is permitted to export technology, services, or goods without getting a prior license from the Department of the Treasury, Office of Foreign Assets Control (“OFAC”). This matter is being handled by the Terrorism and International Narcotics Unit of the department, of which U.S. Attorneys Kimberly Ravener, Michael K. Krouse, and Kyle A. Wirshba are primarily handling the case.

    As with any crime in the United States, the press release reminds the publish that the charge “is merely an accusation,” and Griffith is still innocent until proven guilty. The full press release from the Department of Justice can be viewed at here.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Avatar
    Krystle M
    Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,262FansLike
    2,712FollowersFollow
    4,095FollowersFollow

    Live Bitcoin Price & Latest BTC Chart News

    Today's Latest Crypto News

    Uzbekistan Gov't And Cardano’s Emurgo Partner On Blockchain Task Force For STO Regulations

    Emurgo, Cardano’s blockchain commercial wing, has inked a partnership deal with the Uzbekistan government to help with setting up a task force which will...

    Binance Adds 2nd Fiat To P2P Trading Platform, Vietnamese Dong VND-To-Crypto Now Open

    Binance crypto exchange announced the second fiat currency on their peer-to-peer (P2P) platform on Monday, January 20, 2020. The Vietnamese Dong (VND) was...

    Fed’s “Not” QE Pushing Dow and S&P 500 to ATH makes Investors Nervous, Driving them into Bitcoin

    Buy Bitcoin today while the US Stocks markets stay closed in observance of Martin Luther King Jr. Day Federal Reserve Chairman Jerome Powell might...

    Crypto Payment Processor BitPay Adds XRP Support On Apple iOS And Android

    BitPay, a crypto payment service which provides users a wallet as well as gift cards which can be bought using different coins, is now...

    $7 Trillion AUM Giant Fidelity Posts Job Opening For Bitcoin Mining Engineer

    Fidelity is looking to expand operations and as a result, is hiring a Bitcoin (BTC) mining engineer to help with the design, maintenance, and...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.