A Spanish Fugitive Arrested for North Korean Crypto Scheme
According to a statement from the National Police of Spain, a Spanish fugitive wanted by the FBI for his involvement in providing blockchain services to North Korea has been arrested. The fugitive, Alejandro Cao de Benós, is the founder of the Korean Friendship Association and has been hiding out in Catalonia. Spanish police suspect that he may have been using fake documentation as he was designated an international flight risk. Cao de Benós was detained upon arrival in Madrid after traveling by train from Barcelona.
The Alleged Crypto Scheme
The FBI claims that Cao de Benós organized the “Pyongyang Blockchain and Cryptocurrency Conference” in 2018 for North Korea’s benefit. He worked alongside Christopher Emms, who is currently at large. The following year, Cao de Benós recruited Virgil Griffith, a cryptocurrency expert, to provide illegal cryptocurrency and blockchain technology services to North Korea.
Violation of U.S. Sanctions
The U.S. Department of Justice alleges that both Emms and Cao de Benós taught top North Korean officials how to launder money and evade sanctions using blockchain and cryptocurrency technology during the conference. They also proposed specialized “smart contracts” tailored to North Korea’s interests and planned cryptocurrency transactions designed to evade U.S. sanctions.
Legal Consequences
Virgil Griffith was arrested in 2019 and pleaded guilty to violating the International Economic Powers Act in 2022. He was sentenced to serve 63 months in prison and pay a $100,000 fine. Emms and Cao de Benós were indicted on one count of conspiring to violate and evade U.S. sanctions, with a maximum penalty of twenty years in prison.
Hot Take: Spanish Man Arrested for North Korean Crypto Scheme
Alejandro Cao de Benós, a Spanish fugitive, has been apprehended for his involvement in providing blockchain services to North Korea. This arrest highlights the international efforts to crack down on illicit activities involving cryptocurrencies. The case reveals the potential use of cryptocurrency technology to evade sanctions and launder money. It serves as a reminder of the importance of enforcing sanctions and protecting national security interests. The arrest of Cao de Benós and the ongoing search for Christopher Emms demonstrate the commitment of law enforcement agencies to hold individuals accountable for their involvement in such schemes.
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