UN’s Cautionary Tale

On January 15, the United Nations delivered a friendly reminder, or perhaps a stern warning, regarding North Korea’s upcoming cryptocurrency conference scheduled for February. The word on the street (or rather, via a confidential report) is that attending this conference could land individuals in hot water due to potential sanctions violations. The report is expected to be laid before the U.N. Security Council later this month, emphasizing just how seriously the international community is taking North Korea’s growing fascination with blockchain and cryptocurrency.

The Blockchain Bandits

The timing of the U.N.’s warning is not coincidental. Suspicion has been swirling about North Korea’s interest in the world of digital currency ever since it was reported that agents associated with this famously reclusive country had pilfered around $2 billion from various financial outlets and cryptocurrency exchanges. Rather than spending their newfound wealth on things like, say, rebuilding their infrastructure, it appears North Korea has other intentions: funneling those funds into weapons of mass destruction programs. That’s a big red flag folks!

Stuck in a Sanction Squeeze

North Korea has been on a sanctions diet since it conducted its first nuclear test back in 2006. This diet restricts not only trade in weapons-related goods and materials but also cranks the screws on financial assets, including cryptocurrencies. The sanctions are designed to limit North Korea’s financial avenues that could support its missile and nuclear ambitions, but it seems the country is becoming increasingly crafty—like a cat burglar in a superhero film. And just when you thought things couldn’t get more dramatic, enter Virgil Griffith, an Ethereum Foundation researcher.

Griffith’s Gambit

Griffith took the leap and flew to North Korea in April to attend its first-ever blockchain conference. The indictment against him paints a colorful picture of legal mischief, indicating he provided services without the green light from the U.S. Treasury’s Office of Foreign Assets Control. His consequences? A single count of conspiracy to flout U.S. sanctions, which could land him a hefty 20 years in the slammer. It’s almost cinematic, really!

Caution: Blockchain Ahead

Despite the storm clouds looming overhead, some blockchain enthusiasts remain undeterred. Alejandro Cao de Benos, a self-described special delegate, and Chris Emms, a business developer, are gearing up to host a conference in Pyongyang in February. The cost of admission? Around $3,550—which partly includes sightseeing, conferences, and a healthy dose of anxiety. Talk about an interesting itinerary!

Questions That Remain Unanswered

Brittany Kaiser—who knows a thing or two about digital ethics and human rights—has expressed concerns. Having received an invitation to a suspicious event in August (which ultimately didn’t happen), she’s been vocal about wanting clarity on the motivations behind the different blockchain gatherings in North Korea. She quipped, “Who exactly in the DPRK government wanted to bring in these blockchain buffs?” Kaiser warns that tech, while generally beneficial, can fall into the wrong hands, skewing its original intent and leading to ominous outcomes.