Neopoint Inc.: $95,000 Fine for Illegal Crypto Exports to Korea

The federal body that regulates exports has fined San Diego firm Neopoint Inc. $95,000 for exporting strong encryption software to Korean companies without the necessary government approval. The Commerce Department's Bureau of Export Administration imposed the fine after learning that Neopoint . . . The federal body that regulates exports has fined San Diego firm Neopoint Inc. $95,000 for exporting strong encryption software to Korean companies without the necessary government approval. The Commerce Department's Bureau of Export Administration imposed the fine after learning that Neopoint had exported 128-bit encryption software to two companies in South Korea without obtaining proper licenses.

U.S. export regulations set limits on the strength of encryption software that can be sold to foreign buyers without government approval.

"This case demonstrates that the U.S. Government can and will enforce its export controls on encryption products," Assistant Secretary of Commerce for Export Enforcement Michael J. Garcia said in a prepared statement.

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