Spain Nabs “Friend” of North Korea Over Crypto Sanctions Evasion

North Korea's Crypto Sanctions

Spanish police arrested the head of a North Korean friendship group on Friday over accusations he taught Pyongyang how to dodge US sanctions using cryptocurrency.

Alejandro Cao de Benós, the founder of the Korean Friendship Association, faces 20 years in prison stateside over charges he organized a 2018 blockchain conference in North Korea, conspiring to bypass economic penalties.

Cao de Benós was detained boarding a train in Madrid through an Interpol notice after eluding authorities for a year since his indictment.

Arrest of Friendship Group head

The arrest comes as North Korea aggressively exploits cryptocurrencies to bankroll nuclear enrichment, with state hackers stealing billions in digital assets in recent years, per UN reports.

Cao de Benós also stands accused of working with American Virgil Griffith, himself sentenced last year to 63 months in jail for agreeing to share sanction evasion techniques with North Korean officials.

If extradited and convicted, Cao de Benós would become the latest pawn in intensifying economic warfare playing out between Washington and Pyongyang in both physical and digital realms.

Blockchain for National Security

Yet the Spain-based friendship promoter maintains his innocence, denying ever soliciting Griffith’s services despite longstanding reported Pyongyang ties.

Regardless of facts, the case further spotlights the national security dimensions of blockchain technologies enabling traceless value transfers without regard for borders.

It also serves as a warning to those tempted to export digital financial expertise to adversarial regimes flouting global norms and constraints.