Cryptocurrency expert Virgil Griffith – a US citizen and Singapore resident – pleaded guilty to violating the USA’s International Emergency Economic Powers Act (IEEPA) by providing his services to North Korea. Griffith could be sentenced to up to 20 years in jail.
The IEEPA prohibits US citizens from exporting goods, services, or technology to North Korea without permission from the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury. However, since 2018, Griffith has funded and developed cryptocurrency infrastructure in North Korea without ever obtaining permission from the OFAC. He was aware that North Korea could use this infrastructure to evade US sanctions, and to fund proliferation and other prohibited activities.
In 2019, Griffith physically attended and presented at the ‘Pyongyang Blockchain and Cryptocurrency Conference’ in North Korea. Notably, the US Department of State had not given Griffith the permission to travel to North Korea. Griffith still did so, completely aware that his actions violated US sanctions against North Korea. At the conference, Griffith discussed how North Korea can use blockchain and cryptocurrency technology to evade sanctions and launder money, and conduct nuclear weapons negotiations with the US. Griffith also answered specific questions from individuals from the North Korean government. After the conference, Griffith also tried to hire other US citizens to provide similar services to North Koreans. He even tried to introduce North Korean officials to cryptocurrency and blockchain service providers.
Source: US Department of Justice