Cryptocurrency Expert Charged With Aiding North Korea

[alyssa85]

https://www.bloomberg.com/news/articles/2019-11-29/cryptocurrency-expert-charged-with-aiding-north-korea

The U.S. arrested an Ethereum Foundation cryptocurrency scientist and charged him with helping North Korea use blockchain technology “to evade sanctions and launder money.”

Virgil Griffith, 36, was arrested Thursday at Los Angeles International Airport and charged with conspiring to evade U.S. sanctions against the regime of dictator Kim Jong-un, according to a statement from Manhattan U.S. Attorney Geoffrey Berman. Griffith, a U.S. citizen who lives in Singapore, attended a blockchain and cryptocurrency conference in Pyongyang in April, despite specific State Department warnings.

“Griffith provided highly technical information to North Korea, knowing that this information could be used to help North Korea launder money and evade sanctions,” Berman said in a statement Friday. He “jeopardized the sanctions that both Congress and the president have enacted to place maximum pressure on North Korea’s dangerous regime.”

Griffith was the subject of a 2008 New York Times Magazine profile that described him as a “cult hacker” and dubbed him the “Internet Man of Mystery.“ He worked with programmer and activist Aaron Swartz to develop Tor2web, which allows dark-web sites to be viewed on a standard internet browser. On his Linkedin profile, Griffith, a California Institute of Technology Ph.D., says he moved to Singapore in 2015 because he “concluded the best place for new growth” is Asia.

He has tweeted about North Korea a number of times in the past year. On June 29, he opined that emerging multinational standards on cryptocurrency regulations would create “a market opportunity” for the isolated regime to launch an exchange. In August, he tweeted a picture of his visa to visit North Korea.

Though the charges were filed in New York, Griffith is scheduled to first appear in federal court in Los Angeles sometime Friday.

I don't know what he was thinking. If they warned him in advance, and he still went to North Korea, then he's a prize idiot.

This kind of behaviour brings cryptocurrency into disrepute.

[joniboini]

Maybe you should read further.

https://threadreaderapp.com/thread/1201182901062307840.html?refreshed=yes
https://twitter.com/tayvano_/status/1200532461890854912
https://thenextweb.com/hardfork/2019/12/02/vitalik-buterin-ethereum-virgil-griffith-arrest-cryptocurrency-north-korea/
https://thenextweb.com/hardfork/2019/12/03/ethereum-developer-virgil-griffith-released-pending-trial-cryptocurrency/

[Wexnident]

Maybe you should read further.

https://threadreaderapp.com/thread/1201182901062307840.html?refreshed=yes
https://twitter.com/tayvano_/status/1200532461890854912
https://thenextweb.com/hardfork/2019/12/02/vitalik-buterin-ethereum-virgil-griffith-arrest-cryptocurrency-north-korea/
https://thenextweb.com/hardfork/2019/12/03/ethereum-developer-virgil-griffith-released-pending-trial-cryptocurrency/

Well, I kind of get the idea of why US would actually still arrest him despite the positive sessions he had with NK. It's kind of like, "Why are you allying yourself with the enemy" kind of thing, and I'd say it attacked the pride of the US. I looked up a bit myself and he truly had some worthwhile seminars and sessions that fully discussed the basics of crypto, but only the BASICS. Guess the US is more of a control freak than I thought.

[btc_angela]

Maybe you should read further.

https://threadreaderapp.com/thread/1201182901062307840.html?refreshed=yes
https://twitter.com/tayvano_/status/1200532461890854912
https://thenextweb.com/hardfork/2019/12/02/vitalik-buterin-ethereum-virgil-griffith-arrest-cryptocurrency-north-korea/
https://thenextweb.com/hardfork/2019/12/03/ethereum-developer-virgil-griffith-released-pending-trial-cryptocurrency/

Well, I kind of get the idea of why US would actually still arrest him despite the positive sessions he had with NK. It's kind of like, "Why are you allying yourself with the enemy" kind of thing, and I'd say it attacked the pride of the US. I looked up a bit myself and he truly had some worthwhile seminars and sessions that fully discussed the basics of crypto, but only the BASICS. Guess the US is more of a control freak than I thought.

Of course, what do you expect from them? They are going to protect themselves and their pride even specially if someone from US will help the perceived enemy in this case North Korea. The guy is a genius, however, it seems he did something wrong to the eye of US government. So let's see how everything will turn out because this will affect a lot of people behind crypto.

[beerlover]

I guess it would totally work for the dictators as well and I never really imagined it before. These guys could actually buy anything they want and also sell anything they want using the blockchain technology and the darknet territories. I mean there are people who kill others for money in darknets, mercenaries or whatever they are called, you think it would be impossible for North Korea to sell guns they get from China and Russia on darknet to gain more economical power?

In return they could use that bitcoin to buy stuff they need like food or resources they could help the people or at least the government itself. Long story short bitcoin is decentralized and it is great for public who hates their governments but unfortunately it is also great for governments who hate their public too.

[The Sceptical Chymist]

Launder money?  I'm not sure how helping another country launder money is a crime against the US--but I'm not a lawyer and certainly not a lawmaker.  Very weird (to me).  The "evading sanctions" part of it I get.

The US always has to have a big bad enemy to vilify.  Always.  And the propaganda used to convince the citizenry has gotten sneakier, more insidious.  It used to be that propaganda was obvious back in the WWII days, where you'd have cartoon representations of Hitler and the Japanese, but these days it might be a Youtube video showing N. Korean soldiers and their hopping goose steps or some such thing and it makes me wonder if the US government somehow has a hand in such negative representations.

Anyway, this will probably be perceived as another black mark against crypto, like its association with Silk Road or funding terrorists and that sort of thing.  Makes me want to pull out my hair.

[aardvark15]

He’s lucky that North Korea let him out of the country. He could easily have been volunteered to stay and help them out forever.

[Hydrogen]

If an ethereum developer hand carried a bag of rice into north korea they could be charged with violating economic sanctions. Crypto presentations carry a similar effect. Sanctions apply not only to food and raw materials but to vital information, technology and data as well.

That said I'm not a fan of the heavy handed, authoritarian and overbearing policies nations like the US employ against ETH developers with good intentions who merely want to do presentations and spread innovation and progress around the world. The state's goal is to repress and condemn these tendencies but by being too heavy handed, it can carry the opposite effect. It makes the USA look like a bully and generates sympathy for rogue nations like north korea. Not to mention being unfair in my eyes for the ETH developer if his sentence is severe.

[bittraffic]

US must have suspected something else is being given to the NK besides the technology and demonstrating how to launder.  Laundering is crime which FBI is going to be involve with and probably CIA as well.  You may look at US to be a control freak but there is a good reason for why he is arrest since he was renouncing his US citizenship. Kim illsong still is a bomb freak could be related to homeland security.

[CarnagexD]

If an ethereum developer hand carried a bag of rice into north korea they could be charged with violating economic sanctions. Crypto presentations carry a similar effect. Sanctions apply not only to food and raw materials but to vital information, technology and data as well.

I guess it too. He carried just his presentation to present in North Korea, there is no vital information, technology and data on it that belongs to the U.S. but the fact that he is assisting the DPRK with the cryptocurrency to evade sanctions will surely put him in jail. I already see a probable cause with it. Virgil is a wise man indeed, I know he knows that doing it is a violation of of U.S. sanctions against North Korea.

That said I'm not a fan of the heavy handed, authoritarian and overbearing policies nations like the US employ against ETH developers with good intentions who merely want to do presentations and spread innovation and progress around the world. The state's goal is to repress and condemn these tendencies but by being too heavy handed, it can carry the opposite effect. It makes the USA look like a bully and generates sympathy for rogue nations like north korea. Not to mention being unfair in my eyes for the ETH developer if his sentence is severe.

Looking on the top view, we can literally see U.S. as a selfish nation unwanting North Korea to have the idealogy of cryprocurrency. But then again it's U.S., whatever it says must be follow so be it. I've read some news about it and fortunately Brian Klein is already negotiating the bonds for Virgil's release.

[exstasie]

Launder money?  I'm not sure how helping another country launder money is a crime against the US--but I'm not a lawyer and certainly not a lawmaker.  Very weird (to me).  The "evading sanctions" part of it I get.

The Justice Department seems to be arguing that his "highly technical information" constitutes unlicensed provision of "services" or "technology" to North Korea, which is a sanctions violation.

It strikes me as a bit odd too. Things like nuclear or chemical engineering materials, military-related stuff.......I get that. This makes it seem like you can't bring anything into North Korea, not even words.

[Kprawn]

What did you learn from this? Do not advertise your "illegal" activities on Social media, because they are monitoring all large social media platforms.

Posting a picture of you documents on Twitter to enter North Korea, after your government denied your application to go there, was just stupid.

Lots of criminals flash the proceeds of their crimes on social media platforms and then authorities take notice and they go after them. The 3letter

agencies work with these social media companies, so they miss nothing. 

[hatshepsut93]

https://thenextweb.com/hardfork/2019/12/02/vitalik-buterin-ethereum-virgil-griffith-arrest-cryptocurrency-north-korea/

I love how Vitalik says that he just visited a conference, as if the fact that it was in North Korea is not a big deal at all. In my opinion North Korea is easily the shittiest country in the world - their government controls every aspect of their citizen's lives, even the smallest mistakes get severely punished with entire families being sent to prison camps for life. And let's not forget their infamous nuclear program and threats. Because of all this, I have zero compassion towards this developer, regardless if his actions helped NK or not.

[ecnalubma]

This is unfortunate however he has been warned. Well nothing escapes in the eye of the US intelligence every american will be really screwed if they are caught dealing businesses with rogue nations specially if it pose a threat to their national security. Yet this is another proof how effective is their spying program.   

[Lucius]

In my opinion North Korea is easily the shittiest country in the world - their government controls every aspect of their citizen's lives, even the smallest mistakes get severely punished with entire families being sent to prison camps for life. And let's not forget their infamous nuclear program and threats. Because of all this, I have zero compassion towards this developer, regardless if his actions helped NK or not.

There is no doubt that human rights are at the lowest level in North Korea, but what about other countries that also enforce similar rules to their citizens? Why USA is never say anything about Saudi Arabia or China? North Korea is a man-made threat to the world, created by US policy to create conditions for the constant fear of the American people, while in reality there is really no threat. One rocket fired would mean the complete destruction of North Korea, and their rocket would be destroyed before hitting the target.

The greater threat to the world is all the nuclear and biological weapons possessed by the USA, a country where the culture of killing is at its highest in the whole world. It is only a matter of time before some lunatic will decide to make a day of judgment for the world.

The arrest of this crypto expert it's just a show of strength and message to others to be blindly obedient or end up in prison for 20 years. Great democracy, I'm surprised they didn't kill him like a dog at the airport.

[alyssa85]

I guess it would totally work for the dictators as well and I never really imagined it before. These guys could actually buy anything they want and also sell anything they want using the blockchain technology and the darknet territories. I mean there are people who kill others for money in darknets, mercenaries or whatever they are called, you think it would be impossible for North Korea to sell guns they get from China and Russia on darknet to gain more economical power?

In return they could use that bitcoin to buy stuff they need like food or resources they could help the people or at least the government itself. Long story short bitcoin is decentralized and it is great for public who hates their governments but unfortunately it is also great for governments who hate their public too.

Yes. And Kim Yong Un has totally understood the benefits of cryptocurrency to dictatorships.

Most of those ransom malware viruses which demand bitcoin are from North Korea, and it's state sponsored malware designed to get them bitcoin which they then exchange for dollars on various exchanges using proxies.

[audaciousbeing]

Having seen series of topics on this subject matter, I think eventually what is being done here is just to discourage such moves. Now I want to believe violation of such law is not a criminal matter rather a civil one. Another angle could be that they have been looking for ways to get him and charge him but there is no basis to do that but with him making the move to go to North Korea, they have the basis to say he has violated certain sections of the law. Its now left for them to prove if the presentation done amount to violation of the law which I see them amending to be wide enough to hang him on at least one.

[Lucius]

Most of those ransom malware viruses which demand bitcoin are from North Korea, and it's state sponsored malware designed to get them bitcoin which they then exchange for dollars on various exchanges using proxies.

Where is the proof for those claims? If something is published on CNN or the NY Times, it should be taken as absolute truth? The machinery that works to fabricate such lies is the strongest in the world, as one small and insignificant country becomes the world's biggest problem. Now when there are almost no terrorists to fight with, North Korea is one of the few threats which should be emphasized daily. Almost no one except the USA and occasionally Japan (who is a loyal servant and ally) emphasizes the problem of North Korea.

I see nothing wrong in fact that people try to survive with help of cryptocurrency - when you are under sanctions, you have no choice but to use all the means to survive.

[Hydrogen]

Launder money?  I'm not sure how helping another country launder money is a crime against the US--but I'm not a lawyer and certainly not a lawmaker.  Very weird (to me).  The "evading sanctions" part of it I get.

The Justice Department seems to be arguing that his "highly technical information" constitutes unlicensed provision of "services" or "technology" to North Korea, which is a sanctions violation.

It strikes me as a bit odd too. Things like nuclear or chemical engineering materials, military-related stuff.......I get that. This makes it seem like you can't bring anything into North Korea, not even words.

During the 2008 economic crisis, countries like hungary were bailed out by bankers. In exchange for the bailout, banking cartels demanded hungary's government push certain political agendas. Years later, after paying off their 2008 loans, hungary kicked some banks out of their countries. You can find news stories on this by searching for keywords like "hungary boots rothschild IMF banks out of the country." They didn't appreciate banks' political meddling in their own private affairs and gave them the boot.

This same precedent applies to nations like russia and north korea which fall under economic sanctions. Post sanctions, banks offer russia certain capital support, allowing russia to circumvent sanctions. In exchange banks demand russia push certain political agendas the same as hungary and many other nations who were bailed out in 2008. This isn't a conspiracy theory btw there are plenty of news stories published on banks laundering money for russia post economic sanctions.

One might say that's the motive behind these harsh and overbearing penalties. Banks coming down hard on anyone who threatens the elaborate network of control they've orchestrated over nations like russia via sanctions and other methods.

[Webetcoins]

Most of those ransom malware viruses which demand bitcoin are from North Korea, and it's state sponsored malware designed to get them bitcoin which they then exchange for dollars on various exchanges using proxies.

Where is the proof for those claims? If something is published on CNN or the NY Times, it should be taken as absolute truth? The machinery that works to fabricate such lies is the strongest in the world, as one small and insignificant country becomes the world's biggest problem. Now when there are almost no terrorists to fight with, North Korea is one of the few threats which should be emphasized daily. Almost no one except the USA and occasionally Japan (who is a loyal servant and ally) emphasizes the problem of North Korea.

I see nothing wrong in fact that people try to survive with help of cryptocurrency - when you are under sanctions, you have no choice but to use all the means to survive.

Not believing the CNN or NY Times for a second but the guys living in North Korea are indeed talented. They do create good malwares. And it is not astonishing at all if they demand ransom in the form of bitcoin as this can really make them rich. Moreover, no country is a threat to any one. Common people want peace but it is the governments that keep on playing stupid games which only citizens pay for.