Thread by @innercitypress

OK- here for Virgil Griffith's appeal of his Dec 26 bail denial for alleged crypto violation of #NorthKorea sanctions, which Inner City Press also exclusively covered @SDNYLIVE. This time Virgil has two lawyers. Here comes Judge Broderck. "All rise" - thread

Judge Broderick says he has the 302s from interviews in May and November, but that Griffith's lawyer Klein says he doesn't have. Klein begins argument, notes Griffith's father is here.

Judge Broderick asks if Virgil would continue working. Klein says he's suspended from Ethereum Foundation, though that they've been supportive. This case has nothing to do with Ethereum Foundation, he says.

Judge Broderick tells Virgil Griffith, "Laws in this country are not suggestions... Assisting foreign governments with money laundering is illegal."

Now Judge Broderick says, "If you were in North Korea, you wouldn't be having a bond hearing." Two senior AUSAs walk in. Inner City Press is the only media here.

Klein points out that Griffith is not charged with money laundering, but sanctions violations. He says Virgil is "verbose and provocative." Says Virgil co-invented a Google for the Dark Web. Hands research paper to judge.

Klein says Virgil Griffith was thrown out of TOR project because he was telling Interpol about the Dark Web.

Judge Broderick says he uses a VPN... he thinks.

Klein tells Judge Broderick that SpankChain is crypto currency for porn, says "it's legal."

Klein says Virgil's Ether has lost value, and that his investment in a crypto hedge fund was disclosed. Now Klein offers to make showing to Judge Broderick "in camera" - not available to public, nor perhaps prosecution.

Klein says Virgil considered renouncing US citizenship, but didn't do it, considered going to St Kitts - which has an extradition treaty with the US. Judge Broderick says he checked, he may soon go on a trip to Nevis.

Virgil's father says his house offered as possible security for bond is worth $835,000, with no liens.

Now AUSA Kraus says he's a flight risk, quotes Virgil's texts: crypto for weapons program.

AUSA Kraus: In North Korea, there is no private economy. Conference was by and for regime.

Another senior AUSA walks in.

Inner City Press: Where's US Attorney Geoffrey S. Berman?

AUSA Kraus: Prospect of jail time could make Griffith flee. He was making plans to renounce citizenship. He has undisclosed funds. St Kitts sells passports.

Inner City Press: like #Domenica, from which previous Judge Broderick bailee Ng Lap Seng had one.

AUSA Kraus: Ten have cut GPS bracelets and fled. Griffith could, using Dark Web.

Klein: If he flees, he'd lose his job.

Judge Broderick: How many wallets does Griffith have?
Klein: He has some drives in Singapore, can't access. And St Kitts has no consulate in Tuskaloosa, Alabama

Judge Broderick: There are factors militating for bail. Griffith turned himself in. A $1 million bond secured by sister's and parent's houses. And perhaps he can use the computer, with monitoring. Secure the wallets in Singapore.

AUSA thumbing out messages...

Upshot: for Virgil Griffith, SDNY Judge Broderick is allowing release on bond, to Alabama with his parents as "moral suasion." Proposes FBI agents escort Griffith to flights.

Klein wants Griffith to be able to visit Northern District of California, and only signing of the bond to be required before he is released.
Judge Broderick: No California yet.
Klein: Need unmonitored emailing with Griffith.

Update: the decision is essentially made. Virgil whispers Thanks to his father in the near-empty courtroom. Judge Broderick in robing room with Pre Trial Services nailing down how to write the conditions of release. Exclusive story soon, then #Periscope/ podcast

AUSA Kraus: No email with counsel.
Judge Broderick: His Sixth Amendment rights...
Kraus: No 6th Amendment right to email.Can overnight mail.
Judge Broderick: I'm allowing email. And let him use his passport card.

And it's done: after bind signed and house revisited, Vitgil Griffith will be released. His father tells Inner City Press he's been reading its tweets. Now to Press Room to upload stories, outside to #Periscope. 10-4