North Korea On Sony Hack: ‘We Propose A Joint Investigation Into This Incident’; Foreign Ministry Warns ‘Grave Consequences’ If Americans Decline; US Insists NK Is Involved, Demands Culpability

North Korea on the Sony hack: Foreign Ministry accused the US of "spreading groundless allegations," which a joint inquiry should disprove.

The issue on North Korea and the Sony Hack has the US government involved in the muddle, with Barack Obama commenting Sony should've stood its ground and released "The Interview". The North Korean Foreign Ministry denies involvement, and is requesting a joint inquiry to disprove allegations.

North Korea made the announcement Saturday: "As the United States is spreading groundless allegations and slandering us, we propose a joint investigation with it into this incident. Without resorting to such tortures as were used by the US CIA, we have means to prove that this incident has nothing to do with us." (bbc.com)

The statement also threatened there would be "grave consequence" in store if Americans rejected the proposal.

Saturday's statement is in response to FBI's claim the North Korean government carried out the Sony hack, which leaked data and emails.

In defense, US National Security Spokesman Mark Stroh said "we are confident the North Korean government is responsible for this destructive attack. If the North Korean government wants to help, they can admit their culpability and compensate Sony for the damages this attack caused."

The controversy on North Korea and the Sony hack escalated when theaters withdrew support for "The Interview" last week, and Sony's decision to cancel release for the movie, even online.

US President Barack Obama said Sony made a mistake not releasing the film. "We cannot have a society in which some dictator someplace can start imposing censorship. Or even worse imagine if producers and distributors and others start engaging in self-censorship because they don't want to offend the sensibilities of somebody whose sensibilities probably need to be offended.

I wish [Sony] had spoken to me first."

Sony Chief Executive Michael Lynton refutes claims the company has tapped out to North Korea in the Sony hack. "We have not backed out. We have always had every desire to let the American public see it."