Larry Harmon, of Ohio, was sentenced to three years in prison for laundering more than $300 million worth of Bitcoin through his darknet mixing service, Helix, Bloomberg reported.
Helix was active from 2014 to 2017 and was designed to obscure the origins of cryptocurrency transactions, so that users, almost always criminals, could move funds regularly without detection, the U.S.
Bitcoin Darknet Mixer Helix Facilitated Global Crime Operators Sentenced
Justice Department said. Partnering with the biggest darknet market places, such as AlphaBay the platform collaborated with them to process the illegal transaction like the drugs sales, stolen data and counterfeit goods.
Harmon pleaded guilty in 2021 to operating the unlicensed money-transmitting business known as Helix and conspiracy to launder funds. He mixed over 350,000 Bitcoin, helping move money across the globe to fuel illicit practices, prosecutors said.
Harmon was also ordered to forfeit $311 million the amount of the laundered Bitcoin by U.S. District Judge Beryl Howell. He was previously fined $60million by the U.S. Treasury for breaking anti money laundering laws.
One obvious reason criminals flock to darknet mixers like Helix is because they take advantage of cryptocurrency’s pseudonymous nature. Bitcoin transactions are public record, ensuring while mixers sever links between senders and recipients it complicates law enforcement efforts.
For instance, Harmon’s cooperation in other cases—such as the most recently wrapped up prosecution of Roman Sterlingov, operator of Bitcoin Fog mixing service led to a reduced sentence. His help was extensive, and his case offered the potential to deter future operations, prosecutors said.
But fallout spread to Harmon’s brother, Gary Harmon. After Gary had accessed Bitcoin stored in an IRS evidence locker by using stolen credentials, authorities made Larry’s 2020 arrest. On luxury items he spent some of the seized cryptocurrency. He was later sentenced to four years in prison for the theft.
