UK Edition
Cryptocurrency research scientist arrested for 'aiding North Korea'
An American research who works for Ethereum, the second largest cryptocurrency, has been arrested for giving a talk on how to use blockchain technology to evade sanctions in North Korea.
Virgil Griffith is accused of violating the International Emergency Economic Powers Act, which has a maximum 20 year sentence, after travelling to Pyonyang to talk at the regime's annual blockchain event, despite warnings from the US government.
He was arrested in Los Angeles airport on Thursday and appeared in court on Friday, according to a statement published by the FBI.
The charge sheet alleges that Griffith asked permission to travel to the Pyongyang Blockchain and Cryptocurrency Conference. When he was refused, the Korean embassy prepared a visa that did not need to be affixed to his passport. On April 18, it alleges he travelled to North Korea through China.
Griffith had been cooperating with FBI agents, including an interview in early November in which he discussed his attendance and allowing a search of his phone.
On November 26, the documents state, Griffith, who lives in Singapore, told a friend over the phone that he knew that the reason North Korea had invited him to speak was because they wanted to use his technical prowess to break the law. When asked what interested North Koreans had in cryptocurrency, Griffith allegedly replied “probably avoiding sanctions… who knows”.
Attorney General Geoffrey Berman said: “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. 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.”
Assistant Attorney General John Demers added: “Despite receiving warnings not to go, Griffith allegedly traveled to one of the United States’ foremost adversaries, North Korea, where he taught his audience how to use blockchain technology to evade sanctions. By this complaint, we begin the process of seeking justice for such conduct.”
News of the arrest sparked outcry on social media. Jon McAfee, who is on the run from the Belize government for alleged involvement in the death of his neighbour, wrote: "Virgil Griffith arrested for teaching North Korea how to avoid US sanctions by using cryptocurrency and the Blockchain.
"See what our Government has become –a government corrupt at the core, declaring publicly available information a national secret."