Former Ethereum Foundation programmer Virgil Griffith was released from federal prison and sent to a halfway house after serving time for breaking a U.S. sanctions law.  This is a major update in a case that drew considerable attention from legal and crypto experts.

After presenting a seminar on blockchain technology in North Korea, Griffith received a 63-month sentence in 2022. He is serving the remainder of his sentence under supervision at the halfway house.

Background Of the Case

According to the Coinpaper, Griffith had been released from federal detention on April 9. While he is no longer detained, he will spend the next few weeks in a halfway home as part of his reintegration plan. Griffith’s legal issues began in 2019 when he was arrested for speaking in North Korea about blockchain technology and how it would be applied to bypass sanctions imposed by the U.S. In 2022, he received a 63-month prison term and was fined $100,000, although his sentence was later reduced to 56 months.

Griffith broke the International Emergency Economic Powers Act (IEEPA) by sharing “highly technical information” to the nation, even though the information he provided was already posted online. As per Cointelegraph, his case highlights the growing conflict between blockchain technology and official power, as the technology increasingly allows people and states to bypass conventional financial restrictions, censorship, and monitoring.

In January 2020, a grand jury indicted Virgil Griffith with conspiracy under the IEEPA.  Initially, he pleaded not guilty, and his attorneys sought to have the case dismissed on the grounds that he had not violated any laws. After almost two years of legal battles, Griffith decided to put the issue to rest with a plea deal in September 2021.  He said he traveled to North Korea unauthorized by the US government and defied authorities’ advice not to travel there.

Griffith’s case attracted significant attention from legal officials and the crypto community alike.  Supporters argued that he was merely sharing publicly available information as part of open-source learning and free expression. The Department of Justice accused his presentation of containing technical knowledge that might have helped North Korea circumvent US financial sanctions using blockchain and cryptocurrencies.

Post-Release Developments

According to Coindesk, Griffith is not allowed by the US Department of Commerce to take part directly or indirectly in any software or technology transaction that is for export from the United States. Currently living in a halfway house, Griffith is reportedly asking for a presidential pardon. Griffith will also serve several years on strict probation, though its terms and conditions have not yet been disclosed. His lawyer Alexander Urbelis said in a statement:

“We are seeking a pardon to bring justice to a prosecution that we believe was wrongheaded and fundamentally un-American from the outset, to better Virgil’s life, and to make sure that Virgil has [the] ability to contribute to a world that so desperately needs thinkers and doers like him.”

His case has raised more questions about how US sanctions laws collide with open-source technologies and decentralized platforms.  While some interpret his conviction as a message to developers across borders, others think that it would stifle innovation and restrict the global sharing of technological information.