Prosecutors Oppose Ethereum Dev’s Sentence Reduction

U.S. Justice Department officials have expressed their opposition to the former Ethereum developer Virgil Griffith’s recent motion to reduce his 2022 prison sentence for violating sanctions on North Korea. In a filing on June 17 in the U.S. District Court for the Southern District of New York, U.S. Attorney Damian Williams argued that Griffith’s request to cut his sentence to 51 months should be rejected. Griffith was sentenced to 63 months in prison and fined $100,000 in April 2022. With time already served before sentencing, his projected release date is January 2026.

Williams emphasized that Griffith deliberately circumvented U.S. sanctions by providing services to North Korea, aimed at teaching and promoting the use of cryptocurrency and blockchain technology to evade U.S. and United Nations sanctions. He criticized Griffith for aiding a regime known for committing human rights abuses and making nuclear threats against the United States.

Griffith’s involvement stemmed from his participation in a 2019 cryptocurrency and blockchain conference held in Pyongyang, the capital of North Korea. There, he delivered multiple presentations on how the nation could use cryptocurrencies to circumvent sanctions and engage in money laundering. His defense attorneys argued that he suffers from obsessive-compulsive personality disorder and narcissistic personality disorder, resulting in an unhealthy fascination with North Korea.

In addition to the original charges, prosecutors revealed that Griffith had been disciplined multiple times during his incarceration at the Federal Correctional Institution in Milan, Michigan. Prison authorities reported instances of him attempting to steal minor items such as soap and tea, along with other infractions. These incidents, according to the prosecution, demonstrate Griffith’s continued disregard for rules and regulations, undermining his plea for leniency.

Earlier this year, Griffith’s legal team filed a motion to have his 63-month sentence revisited in light of recent changes to U.S. sentencing guidelines that took effect after his conviction. Under these new guidelines, the recommended sentence range for Griffith’s crimes could be adjusted from 63-78 months to 51-63 months, potentially reducing his prison term by a year and making him eligible for an earlier release in January 2025.

During his sentencing hearing, Griffith claimed that the imposition of sanctions on Russia in response to its invasion of Ukraine had “cured” him of his obsession with North Korea. Judge Kevin Castel doubted Griffith’s sincerity, suggesting that Griffith had no genuine ideological stance and was merely seeking to be at the center of attention, regardless of principles.

Griffith’s attorneys are expected to respond to the Justice Department’s letter within a two-week window. Regardless of the court’s decision on the criminal case, Griffith faces other significant restrictions. The U.S. Department of Commerce has already imposed a 10-year export privilege ban on him, which means he is barred from engaging in any transactions involving U.S.-regulated commodities, software, or technology until 2032.

The case against Griffith highlights the complex intersections of law, technology, and international relations. His actions, seen as a direct threat to not only U.S. sanctions policies but also global security, have sparked considerable debate about the responsibilities of developers in the increasingly politicized tech landscape. With Griffith’s legal team set to challenge the government’s stance, the case will continue to unfold, potentially setting precedents for future interactions between cryptocurrency experts and international regulatory frameworks.

As the legal process progresses, it remains to be seen how Griffith’s personal claims of mental health issues and rehabilitation will weigh against his actions and disciplinary record in prison. The unfolding legal arguments will likely delve deeper into the broader implications of technology-assisted sanction evasion and the accountability of those who facilitate such practices.