#ethan lou

Illustration by Yarek Waszul (yarekwaszul.com).

Will Cryptocurrency Be Alberta's Next Big Boom?

Why I quit my day job to become a Bitcoin miner

This coming summer, right before the week-long Calgary Stampede—which, among other things, brings in oil executives for a series of corporate parties— a local startup will hold the first “Bitcoin Rodeo” industry conference, where insiders will network and attend various presentations about cryptocurrencies. Alberta, once known mainly for oil, is fast becoming a different kind of Wild West.

Ethereum developer Virgil Griffith took a plea deal after breaking sanctions against North Korea and was formally sentenced earlier today— the final chapter in a two-year journey as bizarre as it is shocking.

Journalist Ethan Lou, author of Once a Bitcoin Miner, attended the infamous event in North Korea at which Griffith spoke. He was asked to submit a statement for Griffith’s sentencing, although that statement was ultimately not filed with the court. Here he tells the inside story of what happened.

Pyongyang, April 18, 2019

Virgil Griffith had been on North Korean soil for only a few hours when he casually told fellow travelers and their local guides that his trip was unsanctioned. Unique in the world, the United States bans its citizens from going to North Korea without explicit permission.

Griffith, an American in Singapore working for the Ethereum Foundation, had sought such permission unsuccessfully, he recounted at the round dinner table at Pyongyang’s riverside Pothonggang Hotel. Griffith had made his case the best he could on why he should go to that Pyongyang cryptocurrency conference in 2019 but was denied. And so, he decided to go anyway, he told people at the table.

…

Griffith believed in being forthright, even if it was uncomfortable. Almost immediately after returning to Singapore, Griffith went to the local U.S. embassy to talk about the trip with a special agent. Perhaps, in some way, he thought he was doing his government a favor by telling them all about the cloistered kingdom. Griffith did not expect that meeting to ripple throughout the U.S. government, but Special Agent Brandon Cavanaugh of the Federal Bureau of Investigation’s counterintelligence unit in New York was soon brought into the fold, and then the circle grew to three lawyers from the Justice Department plus Treasury Department attorneys. On Thanksgiving of 2019, Griffith was arrested in Los Angeles.

Accused of helping North Korea bypass sanctions by teaching it about blockchain, Griffith ultimately accepted a plea deal for 63 months in prison and was sentenced in April 2022.

It was the final chapter in a two-year journey as confusing as it was shocking — the story of how an adventuresome utopian and his North Korean trip had come to disturb the merciless forces of geopolitics and national security.

Griffith, through his lawyers, did not respond to an interview request, but documents filed with the court paint a vivid picture of the days following the trip and the decisions and moves made then — a crucial, illuminating period during which FBI agents as much went after Griffith as he fell into their lap.

…

He once suspended his doctorate studies to participate in the reality show King of the Nerds. He was also taken to court after planning to publicly unveil security flaws in campus identity cards, a matter later privately settled. In Griffith’s words, he is someone who likes to poke the proverbial bear. He once told his parents, “I regularly roll grenades into the room, and someone needs to really jump on it.” A friend described him as viewing life as a video game.

In May 2019, about a month after Griffith met the State Department agent in Singapore, the FBI reached out. Griffith was visiting friends in Puerto Rico, a U.S. territory that had become a bit of a crypto hub, where he had rented a small apartment. The FBI told Griffith it wanted a meeting.

Griffith agreed immediately. He had little sense of any danger to himself. He did not hire a lawyer and traveled to New York at his own expense. Among the FBI employees he would meet was Special Agent Cavanaugh.

…

On Nov. 12, Griffith was on a business trip in Northern California. The FBI reached out again, and Griffith and Cavanaugh once more found themselves in the same room, this time at the FBI’s San Francisco field office. Griffith had gotten a little spooked from his last meeting, but he again did not hire a lawyer. And this time, Griffith also gave the FBI permission to search his phone.

Griffith’s decisions may seem baffling. Before one of those FBI meetings, he talked about it with his friend Eric Corley, an editor for a hacker magazine, for whom he once wrote. In his recollections, Corley said he tried to dissuade Griffith from going: “I kept warning him it was a trap.”

But Griffith “insisted” on going to the FBI and “telling the truth” without a lawyer, Corley said. The presentation Griffith had given in North Korea amounted to no more than publicly available information, he thought. He did not believe he had done anything wrong. Shortly after that meeting, Griffith “was convinced they totally got where he was coming from,” Corley said. He called Griffith’s sentiment “ironic.”

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After Griffith’s San Francisco meeting with the FBI, Justice Department officials in New York worked hard to build a case against him. It was not without its challenges, and the matter came to a head a little after midday on Nov. 18. Another Justice Department lawyer, Kyle Wirshba — a Harvard Law School graduate with a gentle voice — learned that the Department of the Treasury had issues with the case. The department’s Office of Foreign Assets Control said it was “a gray area” because it might not be illegal if Griffith’s presentation in North Korea was general information and not tailored for the audience.

Did the Justice Department know the specific nature of Griffith’s presentation? That information became urgent and vital. If the matter went to trial, a Treasury Department expert would need to testify to support the charges. That afternoon, Wirshba posed that question to the FBI’s Special Agent Cavanaugh. He also wrote to his fellow lawyer Krouse, telling him about another government official: “So, of course, the deputy chief has problems.”

…

Depending on your perspective, the Justice Department either thought too little or too much of Griffith. As he was based in Singapore, he had not made arrangements to be in the United States beyond that business trip to Northern California. He also knew unequivocally by then that the law was after him. But Griffith complied with the FBI’s request that he not leave the country.

He stayed with friends in Los Angeles and also decided to spend Thanksgiving with his parents and sister’s family in Baltimore. He told the authorities of those travel plans and sent his itinerary through his lawyer to ensure they knew where he was and that he was not trying to run away.

Griffith still believed in doing the right thing and that it was important to have demonstrated that he tried to follow the rules. He believed in the integrity of the justice system, that everyone gets what they deserve and that the innocent have nothing to fear. A question would arise in the coming days: Was Griffith some sort of scheming mastermind? A traitor bent on undermining his own country? The days following North Korea show that the answer is complicated.

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Despite all the damning accusations against him, Griffith had a certain honesty — a naivety perhaps reinforced by his involvement in the cryptocurrency space, where the law was lax and the only moral compass people had to guide them was their own. Deep in that world, Griffith had simply been too far removed from the wider world with its own values and rules, agendas, intricacies and rigidity.

Two days after that frantic day on Nov. 18, following another flurry of emails and a conference call, the Justice Department prevailed. The prosecutor, Wirshba, had gone to bat with the Office of Foreign Assets Control during the call, and in the view of his colleague Krouse, that conversation went well — “thanks to Kyle’s advocacy.” The OFAC said that, if requested at trial, it would provide a witness to testify that Griffith had broken the law.

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About a week later, on Thanksgiving morning, Griffith was arrested while boarding a flight from Los Angeles to Baltimore, based on a formal complaint from Special Agent Cavanaugh in New York — sworn just one day after Wirshba resolved the Treasury Department’s concerns. The complaint was eight pages and more than 2,000 words, but where it discussed the facts of what happened in North Korea, it contained not even a single piece of information from sources other than Griffith. It was just the man’s own words over the past seven months that had been weaponized against him.

Epic wildfire threatens to engulf Canadian city as 88,000 flee

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ANZAC, Alberta A massive wildfire that has forced the evacuation of all 88,000 people from the western Canadian oil city of Fort McMurray and burned down 1,600 structures has the potential to destroy much of the town, authorities said on Wednesday.

With a few neighborhoods already in ruins, worsening fire conditions Wednesday pushed walls of flames towards thousands of more homes in the…

Epic wildfire threatens to engulf Canadian city as 88,000 flee

[ad_1] ANZAC, Alberta A massive wildfire that has forced the evacuation of all 88,000 people from the western Canadian oil city of Fort McMurray and burned down 1,600 structures has the potential to destroy much of the town, authorities said on Wednesday. With a few neighborhoods already in ruins, worsening fire conditions Wednesday pushed walls of flames towards thousands of more homes in the…