Regulation
North Korea Ethereum Dev Sentence Reduction Denied
The US Department of Justice has strongly opposed a request for a reduced sentence from former Ethereum developer Virgil Griffith.
Griffith, sentenced in April 2022 to 63 months in prison and a $100,000 fine for violating sanctions against North Korea, is now seeking a reduction that could potentially reduce his sentence to 51 months.
Participation in the North Korean conference
His legal representatives say the adjustment should reflect revisions to U.S. post-conviction sentencing guidelines.
U.S. Attorney Damian Williams, in a June 17 filing in the U.S. District Court for the Southern District of New York, argued that Griffith’s past actions and recent conduct in prison do not warrant such leniency.
Griffith’s case dates back to his 2019 attendance at a cryptocurrency and blockchain conference in Pyongyang, North Korea, where he made several presentations.
These discussions were reportedly aimed at informing North Korean participants about how cryptocurrency and blockchain technology could be used to circumvent US and UN sanctions. including for purposes such as money laundering.
Williams emphasized that Griffith engaged in these activities in full awareness of North Korea’s human rights violations and its nuclear threats against the United States.
On June 17, prosecutors filed a motion opposing Virgil Griffith’s request for a reduced sentence. Source: PACER
Prosecutors also highlighted Griffith’s behavior while incarcerated at the Federal Correctional Institution in Milan, Michigan, where he was disciplined for several minor offenses, including attempted thefts of soap and tea.
These offenses, prosecutors say, demonstrate a continued disregard for government rules and do not warrant a reduced sentence.
At his sentencing in April 2022, Griffith said he had overcome his “obsession with North Korea,” influenced by the global response to Russian sanctions following its invasion of Ukraine.
However, Judge Kevin Castel noted Griffith’s lack of ideology, suggesting his willingness to exploit situations for personal gain, regardless of the parties involved.
Despite his prison sentence, Griffith faces additional sanctions from the U.S. Department of Commerce, which has banned him from engaging in any transactions involving U.S. exports, including raw materials, software and technology, until ‘in 2032.
This 10-year ban on export privileges highlights the serious repercussions of Griffith’s actions.
Response from the legal team
Griffith’s legal team has two weeks to respond to the government’s recent complaint opposing the sentence reduction.
The outcome of this legal challenge will determine whether Griffith’s prison sentence will be shortened, potentially allowing his release as early as January 2025, rather than the original release date of January 2026.
Meanwhile, the broader implications of his actions continue to resonate, highlighting tensions between the countries security concerns and the growing field of cryptocurrency.
Prosecutors added that Bureau of Prisons authorities disciplined Griffith “on multiple occasions” during his time at the Federal Correctional Institution in Milan, Michigan.
They cited reports from prison officials saying the former Ethereum developer “attempted to steal soap and tea” and committed other minor offenses while behind bars.
They argue that Griffith’s recent conduct does not warrant further leniency. At the very least, these incidents do not suggest a new respect for government rules and regulations.
In April, Griffith’s legal team asked the court to review his 63-month sentence based on revisions to the U.S. Sentencing Guidelines following his conviction.
Under the new guidelines, a court could consider reducing the recommended sentencing range for Griffith’s sentencing from 63 to 78 months’ imprisonment to 51 to 63 months, which could reduce his prison term by up to a year , making him eligible for release in January 2025.
Court hearing and future ban
At his sentencing hearing in April 2022, Griffith said he had been “cured” of his “obsession with North Korea”, given the example set by sanctions against Russia in response to this country’s attack on Ukraine.
Judge Kevin Castel said at the time that Griffith had no ideology and would “probably play both sides, as long as he’s in the middle.”
Griffith’s legal team is expected to respond to the US government’s letter within 14 days.
Regardless of the outcome of the criminal case, the U.S. Department of Commerce has already imposed a 10-year export lien ban on Griffith, preventing it from engaging in any transactions involving raw materials, software or technologies under U.S. export regulations through 2032.