Larry Harmon, creator of Helix, helped launder nearly $300M in Bitcoin, leading to a 3-year prison sentence and asset forfeitures.
Harmon ran Helix from 2014-2017, helping darknet users hide their illicit funds by processing over 354,000 bitcoins.
Despite his role in laundering large sums, Harmon cooperated in another case, reducing his sentence but still facing a $60M fine.
Helix's creator, Larry Harmon, was found guilty of helping in money laundering and received a three-year prison sentence. Arrested in 2020, Harmon was involved in the laundering of almost $300 million in Bitcoin. His relatively favorable sentence is a reflection of the help he gave in the Bitcoin Fog case. Harmon also has to give over assets totaling more than $400 million, including cryptocurrency, real estate, and financial holdings, as well as almost $311 million in cash.
https://twitter.com/WuBlockchain/status/1857627570050838575 Helix and Its Operations
From 2014 to 2017, Harmon operated Helix, a darknet mixer that processed around 354,468 Bitcoins, valued at $311 million at the time. The service was connected to Grams, a search engine for the darknet, which was also managed by Harmon. Helix was popular among darknet drug dealers, who relied on it to obscure the source of their illicit funds. Harmon charged fees for these services, profiting significantly from his operations.
Harmon ensured Helix integrated with major darknet markets. He developed an Application Programming Interface (API) that allowed seamless connections with Bitcoin withdrawal systems on these platforms. This integration made Helix essential for laundering large sums tied to illegal activities.
Investigative Actions and Forfeitures
The IRS-CI Cyber Crimes Unit and FBI Washington Field Office led the investigation, with support from the Justice Department and international partners. Investigators tracked tens of millions of dollars from darknet markets to Helix. Harmon’s cooperation in the Bitcoin Fog case influenced the relatively reduced sentence he received.
Besides imprisonment, Harmon was sentenced to three years of supervised release. The court ordered him to forfeit $311 million and surrender assets, including cryptocurrencies and real estate valued at more than $400 million.
International Coordination and Additional Penalties
The Office of International Affairs at the Justice Department and the U.S. Attorney's Office for Northern Ohio were instrumental in this prosecution. Belizean officials, via the U.S. Embassy in Belmopan, also contributed to the investigation. The Financial Crimes Enforcement Network consequently fined Harmon $60 million. The U.S. government's dedication to monitoring and penalizing illicit financial operations involving cryptocurrencies is demonstrated by this case.
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