Advertisement
Advertisement
North Korea
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
US cryptocurrency expert Virgil Griffith. Photo: Handout

US cryptocurrency expert Virgil Griffith jailed 63 months for helping North Korea evade sanctions

  • At a 2019 conference in Pyongyang, the well-known hacker gave information on how the country could use cryptocurrency to dodge sanctions
  • The West has imposed increasingly tight penalties on North Korea in recent years to try to rein in its nuclear missile programmes
North Korea
A cryptocurrency expert was sentenced on Tuesday to more than five years in federal prison for helping North Korea evade US sanctions.

Virgil Griffith, 39, pleaded guilty last year to conspiracy, admitting he presented at a cryptocurrency conference in Pyongyang in 2019 even after the US government denied his request to travel there.

A well-known hacker, Griffith also developed “cryptocurrency infrastructure and equipment inside North Korea,” prosecutors wrote in court papers. At the 2019 conference, he advised more than 100 people – including several who appeared to work for the North Korean government – on how to use cryptocurrency to evade sanctions and achieve independence from the global banking system.

The US and the UN Security Council have imposed increasingly tight sanctions on North Korea in recent years to try to rein in its nuclear and ballistic missile programmes. The US government amended sanctions against North Korea in 2018 to prohibit “a US person, wherever located” from exporting technology to Pyongyang.

North Korean hackers stole US$400 million in cryptocurrency

Prosecutors said Griffith acknowledged his presentation amounted to a transfer of technical knowledge to conference attendees.

“Griffith is an American citizen who chose to evade the sanctions of his own country to provide services to a hostile foreign power,” prosecutors wrote. “He did so knowing that power – North Korea – was guilty of atrocities against its own people and has made threats against the United States citing its nuclear capabilities.”

Defence lawyer Brian Klein described Griffith as a “brilliant Caltech-trained scientist who developed a curiosity bordering on obsession” with North Korea. “He viewed himself – albeit arrogantly and naively – as acting in the interest of peace,” Klein said. “He loves his country and never set out to do any harm.”

Klein added that he was disappointed with the 63-month prison sentence but “pleased the judge acknowledged Virgil’s commitment to moving forward with his life productively, and that he is a talented person who has a lot to contribute.”

A self-described “disruptive technologist,” Griffith became something of a tech-world enfant terrible in the early 2000s. In 2007, he created WikiScanner, a tool that aimed to unmask people who anonymously edited entries in Wikipedia, the crowdsourced online encyclopaedia.

North Korean hackers stole US$316 million in cryptocurrency last year

WikiScanner essentially could determine the business, institutions or government agencies that owned the computers from which some edits were made. It quickly identified businesses that had sabotaged competitors’ entries and government agencies that had rewritten history, among other findings.

“I am quite pleased to see the mainstream media enjoying the public relations disaster fireworks as I am,” Griffith said in 2007.

Klein previously said Griffith cooperated with the FBI and “helped educate law enforcement” about the so-called dark web, a network of encrypted internet sites that allow users to remain anonymous.

5