Cryptocurrency Expert, 36, Faces 20 Years in Jail After Being Charged with Helping North Korea Evade Sanctions with Blockchain Talk - Dumbass talked to the FBI with no attorney present

[Marissa Moira]

Ok so, apparently he was just an "ideas guy". This is why he spoke to the FBI because he thought they would just be so floored with his ideas and would just do what he said because he was so smart and his ideas so brilliant. It may have been something like to use bitcoin to dissolve the concept of nations and we become one big happy global family.

The conference he spoke at was apparently on par with sovereign citizen bullshit where using this one weird trick you can overturn the global banking systems by chanting magic words and unplugging your router at the exact moment.

Anyways Ideas Guys deserve jail for just be a stain on humanity as a whole right next to marketers, so the fact that one committed an actual crime worthy of jail is perfectly fine. He can now think up all those wonderful ideas in jail without bothering the people at work and ruining deadlines because he scrapped a weeks worth of work because 5 minutes before the presentation because he just had a eureka moment totally unrelated to what the project was, so he's going to use the presentation time to announce a new project that nobody on the team has any skills or experience in.

 

[ditto]

Ever since Best Korea killed that UVA student, US citizens are not just discouraged from going to North Korea, it is now illegal.

I though that was a botched suicide attempt that his minders tried and failed to cover up.

 

[AmpleApricots]

He doesn't have the kind of face that'll do well in the kinds of prisons you're locked away for 20 years

 

[Wilhelm Bittrich]

Absolutely exceptional. Where to start

1. He kept US citizenship while living abroad. Just because you live in another country does not exempt you from the loving embrace of Uncle Sugar. No matter where you are on the planet, if you are there with a US passport you are bound by the laws of the United States.

2. Ever since Best Korea killed that UVA student, US citizens are not just discouraged from going to North Korea, it is now illegal. The feds are tired of having to do a dog and pony show every time dear leader arrests a US citizen. So any American who enters that hell hole passes beyond the Emperors light and into damnation.

3. Why on gods green earth would you then break the flat travel sanction to go and give a symposium on how to circumvent US financial restrictions while also carrying US citizenship.

4. When HIS most holy inquisition starts asking you about the nature of your guilt, you actually tell them instead of running as fast as you can?

Dude is going to be burned at the stake. And it's all his fault.

It's always the same on the scale.

 

[AnOminous]

The prosecutor is Geoffrey S. Berman, who you might remember from this thread.

Dude is fucked. They're going after him through the Terrorism and International Narcotics Unit. The conduct described is, if not actual treason, at least treason-adjacent. This man is stupid beyond belief for someone who obviously considers himself some kind of genius.

He went to help the most terrorist nation in the world launder drug money to buy nukes. Great job you fucking crypto buffoon.

Justice Dept. press release.

Manhattan U.S. Attorney Announces Arrest Of United States Citizen For Assisting North Korea In Evading Sanctions

www.justice.gov

Department of Justice
U.S. Attorney’s Office
Southern District of New York
FOR IMMEDIATE RELEASE
Friday, November 29, 2019

Manhattan U.S. Attorney Announces Arrest Of United States Citizen For Assisting North Korea In Evading Sanctions

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, John Brown, Assistant Director of the Federal Bureau of Investigation (“FBI”) Counterintelligence Division, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the FBI, announced today the unsealing of a criminal complaint charging VIRGIL GRIFFITH, a United States citizen, with violating the International Emergency Economic Powers Act (“IEEPA”) by traveling to the Democratic People’s Republic of Korea (“DPRK” or “North Korea”) in order deliver a presentation and technical advice on using cryptocurrency and blockchain technology to evade sanctions. GRIFFITH was arrested at Los Angeles International Airport yesterday and will be presented in federal court in Los Angeles on Monday, December 2.

U.S. Attorney Geoffrey S. Berman stated: “As alleged, Virgil Griffith provided highly technical information to North Korea, knowing that this information could be used to help North Korea launder money and evade sanctions. In allegedly doing so, Griffith jeopardized the sanctions that both Congress and the president have enacted to place maximum pressure on North Korea’s dangerous regime.”

Assistant Attorney General John Demers said: “Despite receiving warnings not to go, Griffith allegedly traveled to one of the United States’ foremost adversaries, North Korea, where he taught his audience how to use blockchain technology to evade sanctions. By this complaint, we begin the process of seeking justice for such conduct.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “There are deliberate reasons sanctions have been levied on North Korea. The country and its leader pose a literal threat to our national security and that of our allies. Mr. Griffith allegedly traveled to North Korea without permission from the federal government, and with knowledge what he was doing was against the law. We cannot allow anyone to evade sanctions, because the consequences of North Korea obtaining funding, technology, and information to further its desire to build nuclear weapons put the world at risk. It’s even more egregious that a U.S. citizen allegedly chose to aid our adversary.”

According to the Complaint unsealed today in Manhattan federal court[1]:

Pursuant to the IEEPA and Executive Order 13466, United States Persons are prohibited from exporting any goods, services, or technology to the DPRK without a license from Department of the Treasury, Office of Foreign Assets Control (“OFAC”).

In or about April 2019, GRIFFITH traveled to the DPRK to attend and present at the “Pyongyang Blockchain and Cryptocurrency Conference” (the “DPRK Cryptocurrency Conference”). Despite that the U.S. Department of State had denied GRIFFITH permission to travel to the DPRK, GRIFFITH presented at the DPRK Cryptocurrency Conference, knowing that doing so violated sanctions against the DPRK. At no time did GRIFFITH obtain permission from OFAC to provide goods, services, or technology to the DPRK.

At the DPRK Cryptocurrency Conference, GRIFFITH and other attendees discussed how the DPRK could use blockchain and cryptocurrency technology to launder money and evade sanctions. GRIFFITH’s presentation at the DPRK Cryptocurrency Conference had been approved by DPRK officials and focused on, among other things, how blockchain technology, including a “smart contract,” could be used to benefit the DPRK. GRIFFITH identified several DPRK Cryptocurrency Conference attendees who appeared to work for the North Korean government, and who, during his presentation, asked GRIFFITH specific questions about blockchain and cryptocurrency and prompted discussions on technical aspects of those technologies.

After the DPRK Cryptocurrency Conference, GRIFFITH began formulating plans to facilitate the exchange of cryptocurrency between the DPRK and South Korea, despite knowing that assisting with such an exchange would violate sanctions against the DPRK. GRIFFITH also encouraged other U.S. citizens to travel to North Korea, including to attend the same DPRK Cryptocurrency Conference the following year. Finally, GRIFFITH announced his intention to renounce his U.S. citizenship and began researching how to purchase citizenship from other countries.

* * *

VIRGIL GRIFFITH, 36, is a resident of Singapore and citizen of the United States. GRIFFITH is charged with conspiring to violate the IEEPA, which carries a maximum term of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, for their assistance.

The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Kimberly Ravener, Michael K. Krouse, and Kyle A. Wirshba are in charge of the case, with assistance from Trial Attorneys Christian Ford and Matthew J. McKenzie of the Counterintelligence and Export Control Section.

The charge in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.


[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.



Attachment(s):
Download Virgil Griffith complaint.pdf
Topic(s):
Counterintelligence and Export Control
Component(s):
USAO - New York, Southern
Contact:
Jim Margolin, Nicholas Biase
(212) 637-2600
Press Release Number:
19-409

The fucking dumbass literally gave them pictures of himself breaking the law.

From the complaint.

 

[mindlessobserver]

tbqh, what he did could have made a case for Treason too, but Federal Prosecutors are pretty averse to trotting out the "T" word. Been thinking on why someone who is supposedly so "smart" could be so dumb, and I don't really like "its autism" as an explanation. All he had to do was renounce his US citizenship and localize in Singapore and all of his shenanigans would have been beyond the Glowies reach unless for some stupid reason he traveled to a Five Eyes country.

The best explanation I can come up with is he was all for having the rights and privileges that come with being a US Citizen, especially a US citizen living abroad, while taking on none of the responsibilities that come with it. He spent all his time in a Libertarian fantasy land, got to live the dream in an Asian city, and immersed himself in the no rules ANCAP culture of international crypto markets. US citizenship was "just a thing he had". Convenient when it was useful too him, forgotten about when it was not.

 

[Xarpho]

The best explanation I can come up with is he was all for having the rights and privileges that come with being a US Citizen, especially a US citizen living abroad, while taking on none of the responsibilities that come with it. He spent all his time in a Libertarian fantasy land, got to live the dream in an Asian city, and immersed himself in the no rules ANCAP culture of international crypto markets. US citizenship was "just a thing he had". Convenient when it was useful too him, forgotten about when it was not.

I'm not even sure if he thought he was doing anything illegal. In his mind, he probably showed the FBI everything, convinced he was operating under the law since crypto isn't "real" money, and didn't want to bring in a lawyer because he didn't want the appearance that he did anything wrong.

 

[mindlessobserver]

I'm not even sure if he thought he was doing anything illegal. In his mind, he probably showed the FBI everything, convinced he was operating under the law since crypto isn't "real" money, and didn't want to bring in a lawyer because he didn't want the appearance that he did anything wrong.

You would think someone that operates in the circles he did would have watched the "dont talk to the police" lecture at least once.

Since we are on the subject, dont talk to the police

Don't Talk to the Police

Regent Law Professor James Duane gives viewers startling reasons why they should always exercise their 5th Amendment rights when questioned by government off...

youtu.be

 

[SiccDicc]

You would think someone that operates in the circles he did would have watched the "dont talk to the police" lecture at least once.

Since we are on the subject, dont talk to the police

Don't Talk to the Police

Regent Law Professor James Duane gives viewers startling reasons why they should always exercise their 5th Amendment rights when questioned by government off...

youtu.be

Never talk to cops if you're the one in trouble. You might think they're there to catch the bad guy, they're not. They're there to get a conviction regardless of innocence.

Be very grateful our system operates on innocent until proven guilty and grants us the right to silence -- shame this poor dumb fuck went and proved he was guilty.

 

[AnOminous]

All he had to do was renounce his US citizenship and localize in Singapore and all of his shenanigans would have been beyond the Glowies reach unless for some stupid reason he traveled to a Five Eyes country.

If he were doing it with the intention of specifically interfering with U.S. sanctions laws to harm U.S. citizens, the feds can and do exercise long-arm jurisdiction over even non-citizens. This may run afoul of various international law provisions and might not even hold up in domestic court sometimes, but if they want you they're going to come get you.

All he had to do was not give material assistance to a nuclear proliferation threat we consider, with good cause, to be a threat to our national security.

Never talk to cops if you're the one in trouble. You might think they're there to catch the bad guy, they're not. They're there to get a conviction regardless of innocence.

Be very grateful our system operates on innocent until proven guilty and grants us the right to silence -- shame this poor dumb fuck went and proved he was guilty.

He literally is the bad guy, though. He may have some idealistic bullshit reason for it, but he knew what he was doing was against the law, was told so, and went and did it anyway. It was giving material assistance to an enemy and in direct violation of criminal law. He knew it was such, did it anyway, and somehow was arrogant enough to think he could boast directly to the feds about violating federal law and they somehow wouldn't go after him.

He should have learned from his buddy Aaron Swartz that this is not the case and they do come after you.

I'm not even sure if he thought he was doing anything illegal. In his mind, he probably showed the FBI everything, convinced he was operating under the law since crypto isn't "real" money, and didn't want to bring in a lawyer because he didn't want the appearance that he did anything wrong.

He was entirely aware what he was doing was illegal. He even requested permission to go ahead and do it despite the sanctions, and was told not to do it. He then went and did it anyway. When he got his visa to go to DPRK by way of China, he got it as a separate piece of paper instead of as a stamp in his passport to try to evade scrutiny.

He knew there were sanctions on DPRK, knew he was evading them, knew this was a violation of criminal law, and did it anyway. The complaint lays it out. It's actually fairly horrifying how utterly fucked he is, just imagining being in that situation. He had every opportunity not to be in that situation, though.

 

[SiccDicc]

If he were doing it with the intention of specifically interfering with U.S. sanctions laws to harm U.S. citizens, the feds can and do exercise long-arm jurisdiction over even non-citizens. This may run afoul of various international law provisions and might not even hold up in domestic court sometimes, but if they want you they're going to come get you.

All he had to do was not give material assistance to a nuclear proliferation threat we consider, with good cause, to be a threat to our national security.



He literally is the bad guy, though. He may have some idealistic bullshit reason for it, but he knew what he was doing was against the law, was told so, and went and did it anyway. It was giving material assistance to an enemy and in direct violation of criminal law. He knew it was such, did it anyway, and somehow was arrogant enough to think he could boast directly to the feds about violating federal law and they somehow wouldn't go after him.

He should have learned from his buddy Aaron Swartz that this is not the case and they do come after you.



He was entirely aware what he was doing was illegal. He even requested permission to go ahead and do it despite the sanctions, and was told not to do it. He then went and did it anyway. When he got his visa to go to DPRK by way of China, he got it as a separate piece of paper instead of as a stamp in his passport to try to evade scrutiny.

He knew there were sanctions on DPRK, knew he was evading them, knew this was a violation of criminal law, and did it anyway. The complaint lays it out. It's actually fairly horrifying how utterly fucked he is, just imagining being in that situation. He had every opportunity not to be in that situation, though.

I'm not convinced this isn't some performance piece on Virgil's part about how unfair America is. This is nothing like Aaron Swartz was, which I imagine Virgil thinks it is, in that Aaron was trying to share knowledge and MIT had the FBI lynch him. This is just some dumbass trying to empower a dictatorship. Then again, we're in Clown World and maybe people will be inspired by this dipshit to take North Korea's side.

I have a hatred of payment processors, but I draw the line at giving a tiny nation suffering Small Penis Syndrome access to funds that allows them to finance nukes.

 

[AnOminous]

I'm not convinced this isn't some performance piece on Virgil's part about how unfair America is.

Well he'll get what he wants and I hope it's worth it to him when he's getting spitroasted in prison, because that's where he belongs after a stunt like this.

 

[Tookie]

He's a dumbshit who thinks he's going to be the next Snowden. Hanging around Singapore living off cryptobucks and railing chink girls is my idea of heaven, I hope he dies of super-AIDS in prison.

 

[los pepes]

So what if he just uploaded his speech to youtube instead of traveling there? Or didn't exceptionally, literally say "Hi, North Korea, I am going to use my technical knowledge to show you how to evade US Sanctions" and just left it broad and generic more along the lines of "here is how society needs to move past the international banking system".

Seems like providing support could be stretched pretty far. Although in his specific case they didn't need to stretch anything because he for some odd reason felt the need to repeatedly reaffirm both to the FBI and in private messages that he was specifically trying to help North Korea evade sanctions.

 

[AnOminous]

So what if he just uploaded his speech to youtube instead of traveling there? Or didn't exceptionally, literally say "Hi, North Korea, I am going to use my technical knowledge to show you how to evade US Sanctions" and just left it broad and generic more along the lines of "here is how society needs to move past the international banking system".

Then he'd probably be fine. But he had to go out of his way to make his violation of the law incredibly explicit, clearly willful, and actually get turned down after asking for an exception to be made, then ignore the warning not to do it. He fucked himself in every imaginable way.

 

[Liber Pater]

I though that was a botched suicide attempt that his minders tried and failed to cover up.

That is the most likely scenario based on the physical evidence. It appears that he tried to hang/asphyxiate himself but fucked it up and became a vegetable instead due to the brain damage from cerebral hypoxia. I guess prison bedsheets in North Korea aren't as strong as they (supposedly) are in New York lol.

tbqh, what he did could have made a case for Treason too, but Federal Prosecutors are pretty averse to trotting out the "T" word. Been thinking on why someone who is supposedly so "smart" could be so dumb, and I don't really like "its autism" as an explanation. All he had to do was renounce his US citizenship and localize in Singapore and all of his shenanigans would have been beyond the Glowies reach unless for some stupid reason he traveled to a Five Eyes country.

The best explanation I can come up with is he was all for having the rights and privileges that come with being a US Citizen, especially a US citizen living abroad, while taking on none of the responsibilities that come with it. He spent all his time in a Libertarian fantasy land, got to live the dream in an Asian city, and immersed himself in the no rules ANCAP culture of international crypto markets. US citizenship was "just a thing he had". Convenient when it was useful too him, forgotten about when it was not.

Renouncing citizenship can be complicated and potentially unpleasant (especially for people with significant financial assets). They make it hard for a reason. He may have had intention to renounce but kept putting it off, idk.
In any case, if we was going to do something like this, he should have left the country as soon as he heard the FBI were looking into his conference. If the US government wants to make an example out of you, they will. But their reach is not unlimited.

 

[Freshly Baked Socks]

Necro'd to add a court reporters update:

SDNY COURTHOUSE, Dec 30 – Virgil Griffith, charged with violating North Korea sanctions in connection with a crypto-currency conference there, now faces trial in September 2021 in the U.S. District Court for the Southern District of New York.

This emerged at a telephone conference in the case on December 22. Griffith's defense lawyer Brian E. Klein spoke among other things about filings not yet placed in the public docket, only emailed to SDNY Judge P. Kevin Castel.

Inner City Press, which has covered the case from Griffith's first appearance in the SDNY Magistrates Court to his Christmas 2019 holiday legal moves to get released to home confinement in Alabama, has previously successfully sought sealed documents in this criminal case, see below. Dec 22 podcast here. It live tweeted the December 22 arguments, here and below.

On December 30, the parties agreed the Griffith case can be tried in September 2021, specifically September 7: "Re: United States v. Virgil Griffith, 20 Cr. 15 (PKC) Dear Judge Castel: The parties submit this letter in response to the Court’s December 22, 2020 order to advise on whether there is any reason why the “the Court ought not seek a date for commencement of trial on or after September 7, 2021 and before September 30, 2021.” ECF No. 82. The parties have conferred and identified no reason why the case cannot be tried on or about September 7, 2021 and within the window identified by the Court. Defense counsel, however, request the date of September 7, 2020 because Mr. Buckley has a federal criminal trial in Chicago, United States v. Gregg Smith, 19 Cr. 669 (EEC) (N.D. Ill.), currently scheduled to commence on October 18, 2021." Watch this site.

After-hours on December 28 the SDNY prosecutors admitted another errors, like in the Iran/Nejad and other cases - and belated promised to give the defense - but not the public - the information they withheld and mis-represented, see more on Patreon here: "Re: United States v. Virgil Griffith, 20 Cr. 15 (PKC) Dear Judge Castel: The Government respectfully submits this letter to correct a factual error at the December 22, 2020 argument. The Government apologizes to the Court and counsel for the mistake. The Court inquired at the argument about the initiation of communications with the Office of Foreign Assets Control (“OFAC”) regarding “Virgil Griffith’s activities in North Korea.” (Tr. 42 (enclosed as Exhibit A)). The Government responded that the first contact between prosecutors and OFAC occurred on November 19, 2019, and that there were additional communications “between the FBI and another employee of OFAC” in “October of 2019.” (Id.). The Government later specified that “October 24[, 2019,] is the initiation of conversation between OFAC and the FBI.” (Tr. 48; see also Def. Reply Ex. G). Based in part on those representations, the Court ruled at the argument that the Government must “do a Brady review with OFAC that begins as of October 24, 2019, with the initiatory conversation between an FBI agent and someone at OFAC . . . for any Brady materials in OFAC’s possession on or after that date.” (Tr. 50-51). Following the argument, the Government re-reviewed communications it has collected to date and realized that the FBI began to communicate with OFAC regarding topics that are relevant to this case on August 5, 2019. To address this error and related difficulties in identifying the onset of communications with OFAC prior to undertaking the review, the Government will request from OFAC—without date limitation— any materials relating to Griffith and the 2019 Cryptocurrency Conference in Pyongyang, including participants such as the coconspirators described in the Complaint, and any materials relating to witnesses for the Government at trial. Based on that review, the Government will make any necessary disclosures or proceed, with notice to defense counsel, under the Classified Information Procedures Act." More on Patreon here.

Judge Castel: This is a case with a single count, of conspiracy to violate the law, the IEEPA, not the substantive charge. That may have consequences. The president at the time, President Obama, barred export of goods and services to the DPRK [North Korea]

Judge Castel: I'm looking at an email from Matthew McKenzie, it says "the basis for Griffith's presentation was publicly available info does not undermine the conclusion" that it violated the law. He packaged the info for the DPRK audience

Judge Castel: They traveled to a country where sale was blocked. They agree they are going to endeavor to sell the blocked weapons discussed at the Paris Air Show [this is a hypothetical]. Perhaps you could speak to that? Griffith's lawyer: Hypotheticals are hard

Griffith's lawyer: We're talking about publicly available technology, not weapons. Judge Castel: What if the conference was just a prelude, but there'd be follow through, to transfer info tailored for the DPRK? Griffith's lawyer: That does not fit this case

Griffith's lawyer: The government here is restricting speech. We're encouraging the court to apply strict scrutiny... We had a whole string cite about intangible goods and services. We think the indictment should be dismissed. AUSA Ravener: We specify the services

AUSA Ravener: We cite Griffith pitching his company to the conference attendees. He was offering crypto-currency services.

Judge Castel: Did this conspiracy end, having achieved its purposes by the time Mr. Griffith departed North Korea airspace? Or was it longer?

AUSA Ravener: He followed up, that he'd like to find an emissary to make the crypto-currency exchange. At the conference he identified himself as working for the Ethereum Foundation. He said, we can give you contracts that don't go through the US

Judge Castel: He was a senior research for the Ethereum Foundation. That was essentially a marketing position. Did Ethereum Foundation provide services to others? Or just promote the Ethereum blockchain? AUSA Ravener: We would have to conduct further investigation

AUSA Ravener: Ethereum deals in Ether, that's potentially a service. We have evidence that Mr Griffith spoke with individuals at Ethereum about this ideas of providing services to North Korea. He was admonished not to go. But he went anyway.

Judge Castel: Usually the US has no problem showing the guilty hand, they have problems with showing the guilty mind, mens rea. Here maybe the government can show guilty mind - but you still have to show the guilty hand, the actus reus. AUSA: We'll show at trial

AUSA Ravener: He created a bespoke presentation for the DPRK. It's clear he had done so in coordination with the DPRK. He was the keynote speaker. It's out of the information materials exemption in the OFAC regs

Judge Castel: My understanding of the exemption is that it is not precluded just because the audience didn't know the information. AUSA: He create a pitch how the info could be used to evade sanctions. And he pitched his own financial services processing services.

AUSA Ravener: We believe he tried to acquire domain names like http://blockchain.kp or http://crypto.kp, to enter this market... Judge Castel: So you say the conspiracy continued to December 2019.

Griffith's lawyer: If he gave this speech at Columbia University and it's allowed under the First Amendment, then it's allowed here. Part of a pitch? That is not in their briefs. With respect to Ethereum Foundation, they want to have it both way. He was on leave

Griffith's lawyer: Ethereum is not a company. It's a blockchain. Judge Castel: I got it. The Foundation supports the blockchain. But Mr. Griffith received a paycheck or something from the Ethereum Foundation to promote the blockchain

Judge Castel: How does doubt by OFAC about whether it's a violation of law do anything for the defense? Griffith's lawyer Brian Klein: They asked OFAC for a determination to allow the arrest, and for a witness for the trial. So the OFAC doubts come into play. AUSA Wirshba: We'll be turning over 3500 material.

Griffith's lawyer Klein: I'm glad to here that. We want to know what OFAC said. They are also relying on Chevron deference. We need access to these records. They need to review it for Brady material. [See Rule 5f]

Griffith's lawyer Klein: We'd like to know OFAC's view of DPRK's crypto currency capability. Judge Castel: My library could have that info, but they can't get it in North Korea, and in DPRK they don't have Google searches. Klein: We think some in DPRK have Google

Griffith's lawyer Klein: We believe North Korea already knew a lot before Mr. Griffith's alleged speech. Judge Castel: You may want to ask to know the identity of all witnesses, like in any drug conspiracy case in this courthouse. The ID of cooperators.

Griffith's lawyer Klein: We need the identity of the witness. Judge Castel: That's usually not given, at least in drug cases. Now he cites the Middendorf factors - Inner City Press covered that case, here

Judge Castel is back to the McKenzie email. AUSA: That was the first contact before our Office and OFAC's counsel office. There were discussions between the FBI and OFAC, in October 2019. Another call in November.

Judge Castel: What about Witness Number 2? AUSA: The government is withholding only limited information. Griffith's lawyer Klein: Before Judge Broderick, another prosecutor said everyone in the DPRK works for the government.

Griffith's lawyer Klein: A jury should know that people in North Korea have info about crypto currency. We should get the info now, we are entitled to it or to a broad stipulation.

Judge Castel: There's more merit to that. I'm going to address that in my ruling

Griffith's lawyer Klein: This is the first we're hearing about a call between FBI and OFAC -- Judge Castel: But you got notice of that in writing, Tab G, in your possession. Griffith lawyer Klein: The AUSA spoke about another call, too [He did]

Judge Castel (with a ruling tone of voice) - The communications between the FBI and OFAC began in October 2019. When the prosecution conducts a joint investigation, courts in this circuit have held they must review the other agency's material for Brady material

Judge Castel: My colleague Judge Oetken set forth a very useful test in Middendorf. But it does not completely fit here. OFAC interprets its own regulations. So now a Brady review is required, from October 2019 onward

Judge Castel: With regard to Witness Number 2, the case law is that nothing obligates the government to disclose the identity of its witnesses before trial. I understand that a redacted version of Witness 2's statement has been provided.

Judge Castel: The government says that Mr. Griffith's supporters will try to help him. So I am withholding the identity to protect the witness [!] I'm going to reserve decision on materials about DPRK's crypto capabilities. The parties may wish to stipulate on this

Judge Castel proposes a trial date: after Labor Day 2021. Klein: I want to discuss that with my client. We intend to ask for loosening of restrictions - he has been without Internet. Judge Castel: Each side should write to me why Sept 7, 2021 trial doesn't work

Griffith's lawyer Klein: We will put in a letter on loosening restrictions. Judge Castel: It's one thing to have a case with tough issues. But it's a joy to a judge to have lawyers that can answer questions. It has been helpful. Peaceful holidays to Mr. Griffith

On exclusion of time under Speedy Trial Act, Klein said he'd like to speak with Griffith; his other lawyer Mr. Buckley said March makes sure. Judge Castel: I exclude time to Sept 7, this is not a run of the mill case. Adjourned

Update: after publication of the above, this order: "ORDER as to Virgil Griffith. Defendants motion to compel discovery of material in the possession of OFAC is GRANTED to the extent that the government is directed to conduct a review of material in the possession of OFAC for the period from October 24, 2019 to the present that is related to Mr. Griffith's prosecution; the government shall disclose any materials that must be disclosed to the defendant consistent with the governments obligations. Defendant's motion to compel discovery of the identity of the individual identified as Witness 2 is DENIED. The Court defers ruling on defendants motion to compel a search of files of certain government agencies regarding the cryptocurrency and blockchain capabilities of the DPRK. The parties shall meet and confer on a stipulation. The proposed stipulation shall be submitted to the Court no later than January 25, 2021. The parties are directed to submit a letter to the Court by December 30, 2020 setting forth any reason why the Court ought not seek a date for commencement of trial on or after September 7, 2021 and before September 30, 2021. A conference is set for September 7, 2021 at 9:30 am in Courtroom 11D 500 Pearl Street, New York, NY. For reasons stated on the record, time is excluded in the interest of justice under the Speedy Trial Act through September 7, 2021 to allow both sides to discuss a resolution of this matter and review discovery Time excluded from 12/22/20 until 9/7/21. (Signed by Judge P. Kevin Castel on 12/22/20)(jw) "

Back on November 10, Inner City Press went in person to the proceeding in Judge Castel's Courtroom 11D. It was alone in the gallery; in the front were the three ASUAs, Mr. Buckley for Griffith, and on the side CISO Hartenstein, who performs the same role in the CIA leaks case US v. Joshua Schulte.

The government said it won't make its CIPA motion under March 19. Buckley point out that is more than a year after Griffith was arrested, and that Griffith is seeking FBI and other information.

Judge Castel replied that he will bring the parties in on December 22. He said the public portion of the CIPA Section 2 conference was over; he told Mr Buckley he did not have to wait around (and Inner City Press, by implication, either). But what are the rights of the press and public with respect to these CIPA sealings?

Earlier in the case: Judge Castel to his credit the same day asked each side's counsel to respond: "The Court has received an application from Inner City Press for the unsealing of certain applications by the defendant for the issuance of subpoenas. The parties shall respond to the application by May 22, 2020. If there is no objection, the Court will order the applications and any resulting order unsealed."

On May 29, Judge Castel ruled: "Defendant is directed to file forthwith on ECF his ex parte and in camera applications for subpoenas pursuant to Federal Rule of Criminal Procedure 17. (Signed by Judge P. Kevin Castel on 5/29/2020) (ap)."

And now they have been filed: a March 17 letter and affirmation, and the subpoena itself, for "A list of any and all IP addresses associated with the email address dprk.un@verizon.net, and any logs or similar records of access to the email address dprk.un@verizon.net, for the period from November 1, 2018 to October 30, 2019."

Inner City Press has uploaded the application, affirmation and subpoena on Patreon here.

An aside: the application of diplomatic immunity and/or the Vienna convention to this subpoena, and Verizon's response to it, remain UNclear.

On June 1, Griffith's lawyer filed a motion to dismiss for lack of venue, stating that Griffith's email to the North Korea Mission in New York, responded to, might not have been "received" in New York. Inner City Press is tweeting the photo here. Watch this site.

On May 28, from Judge Castel again to his credit, this: "ORDER as to Virgil Griffith. The government advises that the defendant consents to public disclosure of his ex parte and in camera application for a subpoena pursuant to Federal Rule of Criminal Procedure 17 (the Application) but does not consent to advance disclosure of the Application to the government. To enable the government to intelligently state its position on public disclosure, defendant shall transmit the Application to the government by 1 p.m. today, May 28, 2020. The government shall state whether it has any objection to public disclosure by 1 p.m. on May 29, 2020. The Court will thereafter rule on whether the Application should be publicly filed (Signed by Judge P. Kevin Castel on 5/28/20)(jw)." Watch this site.

The case is US v. Griffith, 20-cr-15 (Castel).

Source: http://www.innercitypress.com/sdnysealed20nkgriffithcyptoicp123020.html

 

[TheRedChair]

US says cryptocurrency expert violated NKorea sanctions

Virgil Griffith, 36, was awaiting a federal court appearance Friday in Los Angeles, a day after he was arrested at Los Angeles International Airport.

www.dailymail.co.uk

• Virgil Griffith, 36, is a US programmer and computer hacker living in Singapore
• Federal government is charging him with conspiring to violate economic sanctions against North Korea
• Griffith spoke at a Pyongyang conference in April during which he provided info on how North Korea could gain 'independence from global banking system'
• Prosecutors say Griffith offered 'technical' advice on how the North Koreans could launder money in violation of US sanctions
• His arrest comes after he showed FBI pictures of his trip to North Korea and insisted on speaking with investigators without a lawyer
• He was arrested at Los Angeles International Airport on Thursday and was scheduled to appear in federal court on Friday
• If convicted, Griffith faces a maximum of 20 years in federal prison

Federal prosecutors have charged a cryptocurrency expert with violating economic sanctions against North Korea by presenting at a conference there this year after the US government denied his request to travel to Pyongyang.

Virgil Griffith, 36, was awaiting a federal court appearance Friday in Los Angeles, a day after he was arrested at Los Angeles International Airport.

Griffith is an American citizen but lives in Singapore. Messages were sent to Griffith's defense attorney seeking comment.

Federal prosecutors said Griffith secured a visa through 'a (North Korean) diplomatic mission facility' in Manhattan for 100 euros and then traveled to the country through China in April.

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Virgil Griffith, 36, an American computer programmer and hacker living in Singapore, was arrested by federal agents at Los Angeles International Airport on Thursday
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He was due to appear in federal court on Friday to answer charges of helping North Korea evade sanctions
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Griffith admitted to attending a blockchain and cryptocurrency conference in Pyongyang last April in defiance of a US government ban ​

A request for comment was sent to North Korea's United Nations mission in New York.

At the conference, Griffith talked about how North Korea could use cryptocurrency to 'achieve independence from the global banking system,' according to a criminal complaint.

The conference was attended by 100 people, prosecutors said, including several who appeared to work for the North Korean government.

The criminal complaint says Griffith showed the FBI photographs of himself in North Korea and provided agents with propaganda from the country.

It said Griffith planned to facilitate the exchange of cryptocurrency between North and South Korea and encouraged other US citizens to attend the same conference next year.

'Griffith announced his intention to renounce his US citizenship and began researching how to purchase citizenship from other countries,' the U.S. Attorney´s Office in Manhattan said in a news release.

Prosecutors say another person involved in the alleged conspiracy was to be brought to New York and arrested.

That person is not named in the criminal complaint against Griffith.

The US attorney in Manhattan, Geoffrey Berman, said Griffith 'provided highly technical information to North Korea, knowing that this information could be used to help North Korea launder money and evade sanctions.'

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Griffith posted an image on social media showing the visa he obtained from the government of North Korea
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Griffith also posted images of bank notes from North Korea on his Facebook page ​

Griffith has contributed to the hacker magazine 2600, which tweeted Friday that Griffith's arrest amounted to 'an attack on all of us.'

'I kept warning him it was a trap,' the magazine's editor, Emmanuel Goldstein said in a separate Twitter post, adding Griffith 'insisted on' speaking to the FBI without a lawyer.

'What´s ironic is that afterwards, he was convinced they totally got where he was coming from.'

The US and the UN Security Council have imposed increasingly tight sanctions on North Korea in recent years to try to rein in its nuclear and ballistic missile programs.

Pyongyang says it wants the US to get the sanctions lifted and provide security guarantees before North Korea will abandon its advancing nuclear arsenal; the US has said the North has to take substantial steps toward denuclearization before the sanctions will come off.

The US government amended sanctions against North Korea in 2018 to prohibit 'a US person, wherever located' from exporting technology to North Korea.

Prosecutors said Griffith acknowledged that his presentation amounted to a transfer of technical knowledge to conference attendees.

A self-described former hacker who went on to get a doctorate in computer science, Griffith became something of a tech-world enfant terrible in the early 2000s.

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The indictment against Griffith alleges that he knew he was transferring technology to people attending the conference who were likely representatives of the North Korean government
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He told The New York Times in 2008 that he considered himself a 'disruptive technologist.'

In 2007, he created WikiScanner, a tool that aimed to unmask people who anonymously edited entries in Wikipedia, the crowdsourced online encyclopedia.

WikiScanner essentially could determine the business, institutions or government agencies that owned the computers from which some edits were made.

It quickly identified businesses that had sabotaged competitors' entries and government agencies that had rewritten history, among other findings.

'I am quite pleased to see the mainstream media enjoying the public-relations disaster fireworks as I am,' Griffiths told The Associated Press in 2007.

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Griffith is said to have insisted on speaking to the FBI without having a lawyer present ​

(Wikipedia creator Jimmy Wales, for his part, said he welcomed WikiScanner as a tool of transparency.)

Four years earlier, as a college student at the University of Alabama, Griffith and a student at another university were about to tell a hacker conference about purported security flaws in a widely used campus debit card system when the manufacturer sued the two.

They had posted online about ways to exploit the alleged flaws to get free vending-machine sodas, laundry machine use and more.

A judge barred the students from discussing the card-swiping system.

In a settlement a few months later, they apologized to the company, promised to never actually build a transaction-processing device and agreed to complete 40 hours of community service.

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TL;DR: Play stupid games, win stupid prizes. The guy directly disobeyed US order - his request to travel to Pyongyang was refused - to not go to a blockchain conference in Pyongyang and - indirectly - teach North Koreans how to money launder using cryptocurrency. This is only made worse by the fact he talked to the FBI with no attorney present. There's believing in your ideals and then there's this guy.

Perfect example of GENERATION FAIL.