SDNY COURTHOUSE,
July 19 – Virgil Griffith,
charged with violating North
Korea sanctions in connection
with a crypto-currency
conference there and facing a
September 27 trial, pleaded
guilty in the morning and was
remanded to jail.
His
sentencing was set for January
18, 2022, but occurred on
April 12. Inner City Press was
there and live tweeted, as he
got 63 months and a $100,000
fine. Thread here
and below.
On July 19, the
US Attorney's Office filed a
motion to go after the $67,818
in Griffith's Fidelity
Brokerage account, saying that
"Griffith has not made a
single payment toward his
judgement" of $200,000.
Meanwhile
Emms, subsequently indicted,
is said to be in limbo in
Saudi Arabia, not allowed to
leave the country but still
without any extradition
request from the US, he says.
The Presidential visit to the
Kingdom did not appear to
change or mention this issue.
We aim to have more on this.
On April 25
the SDNY announced it is
"charging ALEJANDRO CAO DE
BENOS, a citizen of Spain, and
CHRISTOPHER EMMS, a citizen of
the United Kingdom, with
conspiring to violate United
States sanctions on the
Democratic People’s Republic
of Korea (“DPRK” or “North
Korea”) by working with U.S.
citizen Virgil Griffith to
illegally provide
cryptocurrency and blockchain
technology services to the
DPRK...Both CAO DE BENOS and
EMMS remain at large." Inner
City Press has published the
indictment on its
DocumentCloud here
Vlog here.
From April 12:
Virgil Grifftith has been
brought in by US Marshals, in
beige prison clothes. He waves
at his parents in the front
row. Waiting for Judge Castel.
All rise!
Judge Castel takes the bench.
He tells the lawyers they may
unmask (if vaccinated) and
reads out list of sentencing
memos and exhibits / letters -
including the heavily redacted
April 6 submission.
Defense lawyer
Klein will speak 1st. Klein: I
was a prosecutor for 5 years.
Probation didn't consider the
letters of support, ot
conditions in MDC. Don't just
judge St Peter on one day--
Judge Castel: You
don't get to sentence your
client, Mr Klein. I visited
the MDC on March 23...
Klein: We don't
complain about the conditions
in Essex, where Mr Griffith
was also detained. In the MDC,
he got COVID for 3 weeks.
Gangs control commissary. Mr
Griffith is not in a gang.
Klein:
We're going to ask for
designation to Allenwood Low.
We got a medical review of his
head. Judge Castel: Yes,
narcissistic personality
disorder.
Klein: He
was obsessed with North Korea.
He helped a homeless man, Mr
Hayes, he met at the Waffle
House. He saved Mr. Hayes.
Judge Castel: That was after
his arrest.
Klein: The US
says Mr Griffith made his case
a cause celebre. But
that was a statement by
Vitalik Butarin, without Mr
Griffith's knowledge of
consent. The jail call was
just gallows humor. Virgil's
2d lawyer Buckley: There was
an absence of financial gain.
Buckley: This is different
from the Black Market Peso
sanctions case. Nodes are not
specialized.
Buckley: Mr
Griffith attempted to
cooperate with the FBI. He
gave them his GoPro camera and
hooked them up with CC-2. He
should not have to pay a fine
- Judge Berman did not require
it in the Halkbank case. Judge
Castel: Mr Griffith, it's your
time.
Griffith:
Watching Ukraine sanctions has
shown me their value. I have
been cured of my stubborn
arrogance, and my obsession
with North Korea. My career
has been damaged. I'm sorry.
AUSA: This
is not about the First
Amendment - it was smart
contracts for North Korea to
crack down on journalists, and
to sponsor terrorism.
Sanctions are crucial. He
joined forces with a
dictator's regime.
AUSA: He kept
doing it. [Judge Castel
appears to nod in agreement.]
AUSA: He knew what he was
doing. He tried to access over
$1 million in a single crypto
account. He bragged about it.
His supporters went on web
shows, uh, radio shows.
[Podcasts?]
AUSA:
Especially amid the Ukraine
war, this sentence should send
a message about not
undermining sanctions
regimes. Judge Castel: I
am going to impose sentence.
Judge
Castel: Some says Mr Griffith
is being persecuted for
prmoting crypto. But that's
not what this case is about.
He pled guilty the day before
trial. It was intentional
violation of sanctions, which
are intended to avoid military
conflict.
Judge Castel:
Check out the photo of Mr
Griffith in a North Korean
tunic writing on a white
board, No Sanctions, yay! And
a smiley face. Virgil Griffith
hoped to come home, to
Singapore, as a crypto hero.
Ethereum Foundation said they
didn't want to do it directly
Judge Castel:
Virgil Griffith has no
ideology. He'll play off both
sides, as long as he is at the
center. I sentence him to 63
months in prison and a fine of
$100,000.
Docketed
after the guilty plea was an
order allowing his lawyers to
take their fees out of his
Coinbase accounts,
582b97ccd7afbl018834f232 and
52fbe72ld358f6dda000010a.
Photo here.
Podcast here.
On the day of or
after sentencing was set, it
was delayed to April 12, 2022.
Late on March 4,
Griffith's lawyer put in his
sentencing submission, with
redactions. He is asked for 24
months, while Probation
recommends 63 months. Virgil
writes, "I love my country and
did not set up to do anything
to harm it." Vitalik Buterin
describes him reaching out,
and hope the Judge Castel will
let him do more.
On March 18 the
US sentencing memo went in,
asking fro 63 to 78 months and
a fine of $1 million "to deter
the defendant and others from
similar conduct in the
future."
Back on July 20
he faced a bail review
proceeding - in person. He
lost and was remanded, perhaps
having an impact on the
September 27 guilty plea.
Inner City Press was there,
and live tweeted, here
and below (podcast here)
On
September 14, in the run up to
the trial starting on
September 27, there was a
final pre-trial conference
replete with rulings. Inner
City Press live tweeted it here.
On
September 22, Judge Castel
denied Griffith's sealed
motion to depose the Ethereum
Foundation's general counsel
Tju Liang Chua, or to allow
him to testify by video. Order
on Patreon here.
On other grounds - late
produced discovery -
Griffith's lawyers asked
for a week continuance in the
trial.
On September 23,
initially without Griffith
present, Judge Castel held a
hearing then denied the
request for delay. Inner City
Press live tweeted it here.
On September 26,
the Sunday before the trial
starts on Monday, the US
Attorney's Office docketed
their opposition to the
testimony of Ethereum's
General Counsel, and e-mails
of Virgil Griffith, filing on
DocumentCloud here.
Song here
The motion included: "The
defendant served as one of the
highest-ranking individuals in
the Ethereum Foundation, as
“Head of Special Projects,”
and worked to pursue the DPRK
node in coordination with the
organization’s founder and its
Executive Director.... on
August 7, 2018, the defendant
forwarded a proposal from CC-4
to place an Ethereum node
inside the DPRK to the founder
of the Ethereum Foundation,
and another Foundation
employee. See GX 3013
(attached hereto as Exhibit
5). The next day, on August 8,
2018, Griffith told another
Ethereum colleague, “Let me
ask Tju Liang [that is, the
proposed Deponent] as well as
a DPRK specialist whether if
it’s possible to do this
without violating sanctions.
Will update you both.” When
the colleague emphasized, “It
can’t be a sanction workaround
loophole thing either,”
Griffith responded, “I’ll see
what the lawyer says.” This
record of Griffith’s close
coordination with the leaders
of the Ethereum Foundation to
pursue the node, along with
his decision to seek advice
from Ethereum’s own in-house
General Counsel, make clear
that Griffith was not acting
solely in his personal
capacity when he contacted the
proposed Deponent."
On Saturday,
Griffith's lawyer belatedly
docketed their motion, on
Patreon here.
From September
23: Assistant US Attorney:
There is no basis for an
adjournment of the trial. They
are not requesting to exclude,
it seems. Judge Castel:
The parties agreed the US
would make trial exhibit
available on a rolling basis
up to Sept 17? AUSA: We did
not agree to end then
It's 3:15
pm and... "It's the MCC, I
have Virgil here."
Virgil: Hello.
Judge Castel: Welcome.
Inner City Press
will cover the sentencing.
The case is US v.
Griffith, 20-cr-15
(Castel).
***
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