Alejandro Cao de Bens found himself in Spanish custody last Friday after Interpol alerted local authorities about his possible presence in the country. The US issued an arrest warrant for Cao de Bens in 2022, accusing him of collaborating with a US citizen to provide cryptocurrency and blockchain services to North Korea, a violation of US law.
Spanish national nabbed for crypto violations
Spanish police revealed that the Spanish national was identified and apprehended upon his arrival in Madrid from Barcelona, where he had boarded a train. Suspicions arose that he might have been using false documentation. The charges against him are related to the organization of conferences on cryptocurrencies and blockchain in Pyongyang, North Korea’s capital, in 2018. These events allegedly circumvented US sanctions. If convicted in the US, Cao de Bens could face a maximum sentence of 20 years in prison.
The Korean Friendship Association, which Cao de Bens founded, is at the center of these allegations. US authorities issued the arrest warrant based on the association’s purported involvement in facilitating cryptocurrency and blockchain services to North Korea. Virgil Griffiths, a US citizen connected to Cao de Bens, had already been sentenced to 63 months in jail and fined $100,000 in 2022 for violating the International Emergency Economic Powers Act.
According to the US Office of Public Affairs, Griffith knew that North Korea could exploit these services to evade US sanctions and fund its nuclear weapons program and other illicit activities. In contrast, Cao de Bens vehemently denied the accusations, emphasizing their “totally false” nature and pointing to the lack of evidence linking him to Virgil Griffin. The case highlights the broader issue of North Korea’s exploitation of cryptocurrencies.
North Korean crypto exploits in the international space
Reports indicate that North Korean hackers, assuming various roles such as recruiters, IT professionals, and government officials, stole $3 billion in cryptocurrency over five years. Additionally, hackers with ties to North Korea reportedly secured their largest cryptocurrency haul to date, stealing $630 million last year, according to a confidential UN report. Cao de Bens’ arrest underscores international efforts to combat illicit activities related to cryptocurrency and blockchain technology.
The collaboration between Interpol and Spanish authorities exemplifies the global response to individuals accused of aiding countries like North Korea in circumventing economic sanctions through these emerging technologies. As legal proceedings unfold, the case involving Alejandro Cao de Bens adds another chapter to the ongoing narrative of the intersection between cryptocurrency, international sanctions, and illicit activities. It illuminates the challenges faced by law enforcement agencies in monitoring and preventing the misuse of blockchain technology for purposes contrary to national and international laws.
The arrest of Cao de Bens is a reminder that the evolving landscape of financial technologies requires continuous scrutiny and global cooperation to address potential threats to national and international security. The case serves as a cautionary tale about the need for vigilance in monitoring the intersection of cryptocurrency, sanctions, and geopolitical tensions.
