Thread by @tayvano_

Alright here's the short version of the roller coaster.

1. News breaks that Virgil went to North Korea to teach them how to use crypto to launder money + evade sanctions.

2. Docs show that isn't *really* the case. Headlines misleading af.

3. Docs show that he made some other bad choices, like testing the borderlessness of crypto...using the N. & S. Korea border. 😬

These are more likely the foundation of his arrest, not the substance of his conference talk.

4. There's a lot of other fluff but it's not really relevant. He said things on the internet that you wouldn't say (surprise!) and tried to get citizenship outside US (how original.)

Unless you are writing his biography, more interesting is what US govt did.

5. Besides the misleading headlines that insinuate this is an attack on teaching crypto to a someone your govt doesn't like, it seems like the govt is more upset with one of their citizens getting involved with a sanctioned country + trying to send crypto + not stopping.

6. Now, choose your hot take:
- He's an idiot
- Ethereum is useless so did he really help North Korea?
- Say anything, then allude to Ethereum having a CEO who colluded
- This is a bad look for crypto.
-Oh shit the govt is watching us!
-Summarize headlines w/ a "damn" at the end

7. Or your surprise take!
- I can't believe a cryptocurrency researcher would try to send money across borders!
- Why would a crypto nerd travel to another country to teach crypto?!
- How did a talk called "Blockchain & Peace" teach evil govt how to avoid sanctions?! Sneaky!

8. Or your I would *never* do anything like this take

"I have never supported the use of cryptocurrency for anything other than educa..ooohshit that's what he got busted for...um...speculative...no shit that's the SEC....censorship resistan...fuck no I applaud censorship...."

So @peterktodd pointed out that I failed to mention that the headlines were misleading bc the *gov't's public statement* was misleading.

But, why would the gov't focus on the talk/info/knowledge when they have other, stronger, stuff? One theory...😱:

https://twitter.com/gichiba/status/1200643292477575169?s=19

Here is a much more fact-filled and look at the Virgil / North Korea situation.
👇👇👇👇👇👇👇👇👇👇👇👇👇👇👇

https://twitter.com/CryptoLawRev/status/1200740297707118593?s=19

Key things I learned:

1. IEEPA § 1705(a)

"Sanctions" ≈ unlawful for a person to violate, attempt to violate, conspire to violate, or cause a violation of any license, order, regulation, or prohibition issued under [the IEEPA].

(Jeez our laws are a maze)

1b. Pres has power to block transactions, seize property when extraordinary threats, a national emergency has been declared.

1c. Treasury’s Office of Foreign Assets Control has power to block assets
w/o providing evidence of person doing wrong
w/o person responding in court.

2. Executive Order 13722 (Barack Obama, 2016)

3. Gov + narrative shifts = 💖

@CryptoLawRev catches:

"Pyongyang Blockchain and Cryptocurrency Conference in North Korea" becomes
"DPRK Cryptocurrency Conference"

Tech -> crypto/$
City -> national

Subtle, yet effective.

The "why" theory, similar to one shared by @peterktodd & @gichiba & prob others:

> this presents a relatively easy-to-prosecute case with the potential to create binding judicial precedent recognizing Eth as money/financial instrument.

https://twitter.com/gichiba/status/1200643292477575169?s=20

(ps: 'cryptocurrency is money' is more accurate, tho not as memey. the entire document refers to ETH as 'Cryptocurrency-1')

The bigger-picture takeaway (imho)....

"Viewing inherently complex legal issues and regimes (‘targeted financial sanctions regimes’) as binary choices plays directly into gray traps laid by regulators, governors, and enforcers.

Gray areas in the law are not a bug in the system; they are the system."

-@CryptoLawRev