US man helps North Korea with cryptocurrency services, jailed for 63 months

Court officials in New York on Tuesday said a US cryptocurrency expert was sentenced to 63 months in prison for advising North Korea on how to create cryptocurrency services and blockchain technology to circumvent US sanctions over its nuclear program.

Virgil Griffith, 39, had pleaded guilty to conspiring to violate US law, in a bid to reduce the sentence for a crime that can carry up to 20 years behind bars.

Also read: North Korea celebrates 10 years of Kim Jong Un’s rule

Prosecutor Damian Williams said, “there is no question North Korea poses a national security threat to our nation, and the regime has shown time and again it will stop at nothing to ignore our laws for its own benefit.”

He further said that Griffith had “admitted in court he took actions to evade sanctions, which are in place to prevent (North Korea) from building a nuclear weapon.”

Also read: New York civil fraud case: Donald Trump faces contempt of court claim

In April 2019, Griffith reportedly gave a presentation in Pyongyang, North Korea, on cryptocurrency and blockchain technology. He was arrested at Los Angeles airport in November the same year.

According to the court, Griffith provided information on how North Korea could use the technology to launder money and evade sanctions, including through “smart contracts.”

Also read: India all set to boost arms output, fearing shortfall from Russia

The prosecution said that after the presentation, Griffith “pursued plans to facilitate the exchange of cryptocurrency between the Democratic People’s Republic of Korea and South Korea, despite knowing that assisting with such an exchange would violate sanctions against the DPRK.”

The United States prohibits the export of goods, services or technology to North Korea without special permission from the Treasury Department’s Office of Foreign Assets Control.

Also read: United Nations all set to vote on suspending Russia from rights council today

In addition to 63 months in jail, Griffith will spend three years on probation.

Griffith holds a doctorate from the California Institute of Technology and has also worked on Ethereum, a Singapore-based global platform with blockchain technology for business and financial use, which has a cryptocurrency named after it.