Nov 16th 2024

Bitcoin Mixer Operator Sentenced to Three Years for Laundering Over $300 Million

Larry Harmon, an Ohio resident and operator of the darknet Bitcoin mixing service Helix, has been sentenced to three years in federal prison for laundering more than $300 million worth of Bitcoin, according to Bloomberg. The U.S. Justice Department stated that Helix was designed to obscure cryptocurrency transaction origins, facilitating illegal activities such as drug sales and counterfeit goods transactions.

Helix’s Darknet Operations

From 2014 to 2017, Harmon’s service collaborated with notorious darknet marketplaces, including AlphaBay, to process illicit payments. Prosecutors revealed that Helix laundered over 350,000 Bitcoin, equivalent to approximately $311 million at the time, enabling criminal users to evade detection.

Harmon pleaded guilty in 2021 to operating an unlicensed money-transmitting business and conspiracy to launder funds. In addition to his prison term, U.S. District Judge Beryl Howell ordered Harmon to forfeit the full $311 million value of the laundered cryptocurrency. This punishment follows a $60 million fine levied by the U.S. Treasury for anti-money laundering violations.

The Role of Mixers in Crypto Crime

Darknet mixers like Helix exploit the pseudonymous nature of cryptocurrencies by breaking the traceable links between transaction senders and recipients. This capability has made them invaluable tools for criminals attempting to bypass law enforcement surveillance on public blockchain ledgers.

Harmon’s case underscores the challenges regulators face in combatting cryptocurrency-enabled crime, despite Bitcoin’s transparency. Law enforcement efforts to dismantle such networks have increasingly targeted operators like Harmon.