Spanish Aristocrat Arrested For Helping Teach North Koreans How To Avoid U.S. Sanctions With Cryptocurrency
Topline
A Spanish citizen from an aristocratic family was arrested by Spanish police on Friday for organizing a cryptocurrency conference in North Korea–where the U.S. Department of Justice believes attendees taught the country’s officials how to use the technology to evade sanctions.
Key Facts
Alejandro Cao de Benos, a Spanish citizen and longtime North Korean sympathizer, is facing up to 20 years in an American prison for the scheme.
According to the Justice Department, Cao de Benos organized the Democratic Peoples’ Republic of Korea (DPRK) Cryptocurrency Conference in April 2019, where he introduced cryptocurrency experts to North Korean officials.
Cao de Benos’ conference allegedly showcased how the rogue state could use the emerging technology to launder money and evade U.S. regulators, according to prosecutors.
He was arrested by Spanish authorities at the Madrid-Puerta de Atocha train station in the nation’s capital on Friday, the country’s National Police said.
Cao de Benos, who police believe was hiding in Barcelona using a fake name, spent over a year on the FBI’s most wanted list after he was charged.
He appeared before a Spanish High Court on Friday, but the U.S. has not started the formal extradition process, Reuters reported.
Key Background
Cao de Benos, a Spaniard from an aristocratic family, founded the Korea Friendship Association in 2000. He is frequently cited as North Korea’s most prominent supporter in the West, and has appeared in multiple documentaries about the isolated nation. He allegedly began planning the conference in 2018. Attendees included U.S. citizen Virgil Griffiths, who was arrested for his role in the conference and sentenced to five years in prison and fined $100,000 in 2022. Also in attendance was Christopher Emms, a U.K. citizen on the FBI’s most wanted list. According to prosecutors, Griffith and Emms told North Korean government officials “mapped out cryptocurrency transactions designed to evade and avoid U.S. sanctions, including by diagramming such transactions on a whiteboard for the North Korean audience.” Emms also allegedly explained how to use “over-the-counter cryptocurrency providers” to process transactions while avoiding U.S. oversight.
Crucial Quote
Cao de Benos denied the accusations on Friday in a post on X, formerly Twitter. “There is no extradition. The U.S. accusation, in addition to being false, does not exist in Spain (Order of former President Trump).” The U.S. does have an extradition treaty with Spain, which was signed in 2004.
Surprising Fact
In the years since the DPRK Cryptocurrency Conference, North Korea has successfully used blockchain technology and cryptocurrency to obtain nearly $3 billion, according to a report published on Thursday by cybersecurity firm Recorded Future. According to the Treasury Department’s Office of Foreign Control, North Korea was also using the world’s largest crypto exchange, Binance, as part of its cryptocurrency operation. Binance was fined a record $968,618,825 by the Treasury Department for allowing sanctioned individuals and organizations to trade on their platform, including some from North Korea. The fines are part of the $4 billion settlement the company agreed to pay in November.
