An American citizen named Virgil Griffith was sentenced to nearly 7 years in prison for cryptocurrency.
Griffith, a scientist with the Ethereum Foundation, pleaded guilty in court to suggesting the use of cryptocurrencies to North Korea. He was convicted of violating the provisions of the International Emergency Economic Powers Act.
The sentences he faces ranged from 63 months to 78 months, and began jail on January 18.
Court documents reveal that Griffith had planned to give his services to someone in North Korea. Namely by developing and financing the cryptocurrency infrastructure in the country.
According to the Department of Justice (DoJ), Griffith realized his move could help North Korea evade US sanctions. In 2019 Griffith even went to North Korea to attend a crypto and blockchain conference.
Even though the US Department of State has refused the visit permit, because it violates US sanctions against North Korea, which prohibits the export of goods, services, or technology to the country.
While in North Korea, the DoJ alleged that Griffith shared his knowledge about blockchain, and how blockchain technology and cryptocurrencies could help North Korea to 'launder money' and evade sanctions they receive from the US.
Likewise with the use of 'smart contracts' on the blockchain that North Korea can use to negotiate with the US over nuclear weapons. Griffith, who is based in Singapore, plans to give up his citizenship to become a citizen of another country.
Griffith, who was arrested at Los Angeles International Airport in November 2019, is alleged to have tried to recruit other US citizens to go to North Korea and offer similar crypto services.
The man who has a doctoral degree in theoretical neuroscience from the California Institute of Technology has pleaded guilty before his trial. That's why the Prosecutor gave a lighter sentence, less than 7 years, from the maximum sentence of 20 years.