Security News > 2021 > September > Blockhead admits to helping North Korea mine crypto-bucks, faces 20 years jail

A US citizen has admitted to helping the Democratic People's Republic of Korea to establish cryptocurrency capabilities and faces up to 20 years jail for his actions.

The Department of Justice on Monday revealed that Virgil Griffith, a US citizen resident in Singapore, hatched plans in 2018 to help an individual in the hermit kingdom mine cryptocurrency.

The DoJ alleges that Griffth and his co-conspirators "Provided instruction on how the DPRK could use blockchain and cryptocurrency technology to launder money and evade sanctions" and "How blockchain technology such as 'smart contracts' could be used to benefit the DPRK, including in nuclear weapons negotiations with the United States".

The DoJ alleges that after the conference, Griffith "Attempted to recruit other US citizens to travel to North Korea and provide similar services to DPRK persons, and attempted to broker introductions for the DPRK to other cryptocurrency and blockchain service providers".

North Korea stands accused of multiple attacks on cryptocurrency infrastructure, conducted to help it secure funds it cannot access thanks to international sanctions imposed in protest at the DPRK's human rights record.

Griffith was charged with failing to obtain permission from the US Office of Foreign Assets Control before engaging with the DPRK, and pled guilty to conspiring to violate the International Emergency Economic Powers Act.

News URL

https://go.theregister.com/feed/www.theregister.com/2021/09/28/blockhead_admits_to_helping_north/