A former ETH employee has been imprisoned after he was accused of helping North Korea use cryptocurrencies to evade sanctions.
In this photo illustration of the ethereum cryptocurrency 'altcoin' sits arranged for a photograph on April 25, 2018 in London, England. Cryptocurrency markets began to recover this month following a massive crash during the first quarter of 2018, seeing more than $550 billion wiped from the total market capitalisation.
The ex-Ethereum staff, Virgil Griffith, already pleaded guilty, allowing authorities to close the case. Because of this, he is now facing five-year imprisonment.
Aside from this, he is also fined $100,000. Griffith, who is also a well-known American programmer, violated the U.S. International Emergency Economic Powers Act by helping North Korea to bypass sanctions and launder money through the rising crypto techs.
Why Former ETH Employee Helps North Korea
Griffith shared why he helped the North Koreans to use cryptocurrencies as a way to bypass sanctions.
LONDON, ENGLAND - APRIL 25: In this photo illustration of the ethereum cryptocurrency 'altcoin' sits arranged for a photograph on April 25, 2018 in London, England. Cryptocurrency markets began to recover this month following a massive crash during the first quarter of 2018, seeing more than $550 billion wiped from the total market capitalisation.
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"I became obsessed with seeing the country before it fell. Akin to someone offered the chance to see East Berlin in its final days before the Wall came down," said a former ETH expert via PC Games.
On the other hand, Vitali Buterin, the Ethereum co-founder, already warned Griffith about his decision to help the Asian country.
Buterin said that Griffith's plan to visit Pyongyang is already a bad idea, clarifying that it was the employee's personal decision to make the trip to North Korea.
However, the ETH co-founder said that it is still unclear if his recent visit to Pyongyang was the main reason why he was suddenly influenced to do his wrongdoing.
How Cryptocurrencies Bypass Sanctions
As of writing, cryptocurrencies are still criticized because of their energy consumption and the anonymity they offer to blockchain consumers.
One example is Russia. The New York Times recently reported that experts warn about cryptocurrencies being used by Russians to lessen the effect of U.S. sanctions.
For the past few years, sanctions have been among the most efficient, non-violent tools of the United States to influence the negative behaviors of other countries.
But, it seems like cryptocurrencies are becoming a workaround for other nations to bypass sanctions.
Meanwhile, a new crypto-stealing malware appeared on Android and iOS devices.
On the other hand, Australians now use crypto to purchase expensive and luxurious cars.
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Written by: Griffin Davis
