Ethereum Developer Virgil Griffith Jailed Again After Checking Coinbase Accounts

Ethereum developer Virgil Griffith has violated the terms of his bail and has been detained after allegedly accessing his cryptocurrency accounts.

U.S. District Judge P. Kevin Castel reportedly issued the remand order after Griffith attempted to access Ethereum assets held by Coinbase in May.

The Ethereum Foundation researcher will likely spend the next two months in jail. He is scheduled to go on trial on September 21 on charges of conspiring with North Korea to violate U.S. sanctions against the country and faces up to 20 years in prison.

According to Law360, Judge Castel’s main concern was flight risk, as the value of Griffith’s holdings had jumped to $1 million, which the judge said may have influenced Griffith’s decision to check the wallet.

Prosecutors requested a remand on July 9, claiming that Griffith violated the terms of his bail, which severely restricted his internet access. He allegedly visited Coinbase and requested to remove an account security feature. He stated: "Because the FBI took my device, I need to remove (two-factor authentication)."

The defense attorney said he attempted to access Coinbase only after consulting with his attorney, adding that it was his family in Alabama who made the visit on his behalf.

Griffith was charged and indicted on January 7, 2020, on one count of conspiracy to violate the International Emergency Economic Powers Act following his arrest in November 2019. He was initially denied bail but was ultimately granted a $1 million bail order in late December 2019.

Federal authorities believe he assisted North Korea in laundering money using cryptocurrencies to evade U.S. sanctions after attending a blockchain conference in Pyongyang in April 2019.

In October 2020, Griffith filed a motion to dismiss the conspiracy charge, claiming that his remarks at the April 2019 conference were publicly available information and therefore he did not provide "services" to North Korean officials. The following month, lawyers representing the U.S. government called the claim "ridiculous."