Ethereum OG jailed for helping Kim Jong Un

His lawyers described him as a brilliant scientist who developed a near obsession with North Korea and viewed himself as acting in the interest of peace.

His lawyers described him as a brilliant scientist who developed a near obsession with North Korea and viewed himself as acting in the interest of peace.

A cryptocurrency expert who gave a presentation in North Korea on how to use blockchain technology to evade US sanctions was sentenced to 63 months in prison on Tuesday.

Virgil Griffith, 39, pleaded guilty in September to one count of conspiring to violate the International Emergency Economic Powers Act, which prohibits US citizens from exporting goods, services or technology to sanctioned countries, including North Korea. Federal prosecutors accused the former Ethereum Foundation researcher of jeopardising US diplomacy and weakening economic sanctions intended to pressure a hostile foreign power.

In a New York federal court, US District Judge P. Kevin Castel said  Griffith knew going to North Korea was illegal but still went in the hope of becoming “a crypto hero to be admired and praised for his standing up to government sanctions”.

At his sentencing, Griffith said he has since realised his actions were wrong. His arrest led to the loss of his job at the Ethereum Foundation, wrecked his career and embarrassed his family, he said.

“I have learned my lesson,” he said.

Federal prosecutors had asked for a sentence within the federal guidelines of 63 to 78 months in prison and a fine of up to $1 million.

Griffith’s lawyers had asked for a sentence of two years in prison, citing his time spent incarcerated under harsh conditions at a Brooklyn detention centre before his sentencing, adding he suffered from personality disorders. They described him as a brilliant scientist who developed a near obsession with North Korea and viewed himself as acting in the interest of peace.

Judge Castel said he reached the 63-month sentence after weighing the need to set a punishment to deter others from violating sanctions and the circumstances which Griffith’s lawyers highlighted. The judge also ordered fined Griffith $100,000.

“While we are disappointed with the sentence, we are 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,”Griffith’s lawyer Brian Klein said.

The Ethereum Foundation is a nonprofit organisation set up to support Ethereum, a popular cryptocurrency platform. Ethereum co-creator Vitalik Buterin, a friend of Griffith, previously said on Twitter that Griffith went to North Korea without help from the foundation and many had counseled against the trip.

The US and  United Nations Security Council have tried to constrain North Korea’s efforts to build its nuclear weapons program by enacting tough sanctions, including bans on trade, finance and weapon sales.

Prosecutors said in 2018  Griffith began working on plans to develop cryptocurrency infrastructure in North Korea. Despite the State Department warning him not to go to North Korea, Griffith traveled to Pyongyang in April 2019 to attend a blockchain and cryptocurrency conference, according to prosecutors.

Dressed in a North Korean uniform, Griffith gave a talk on circumventing sanctions to an audience of about 100 people. A photograph of the presentation shows Griffith illustrating on a whiteboard how to send cryptocurrency using the Ethereum network. The words “no sanctions” and a picture of a smiley face were written next to the illustration, prosecutors said.

Griffith also pitched financial services involving blockchain technology to conference attendees and consulted with North Korean citizens on how to transfer cryptocurrency assets, prosecutors said. Federal investigators arrested him in Los Angeles in November 2019.

A representative for the foundation did not immediately respond to a request for comment.

Mr. Buterin and some of Griffith’s former colleagues at the Ethereum Foundation wrote letters to Judge Castel in support of leniency.