Crime doesn't pay- or at least that was the case with Larry Dean Harmon, who was recently sentenced to three years in prison and ordered to forfeit over $400 million in assets for operating a darknet-based 'mixer' called Helix which laundered his customers Bitcoins. His operation was very popular among online drug dealers who used his services to launder money.
According to the press release, Helix processed approximately 354,468 bitcoins during its operations, totaling $311,145,854 when these transactions occurred. The court cases also mention that this operation consists of funds coming through the darknet drug markets. In return, Harmon, 41, a resident of Akron, retained a percentage from the transaction as a commission.
Harmon did this by developing an API that integrated the darknet drug marketplace with Helix to make direct Bitcoin withdrawals. Eventually, the investigators were able to trace this transaction, which involved tens of millions of dollars. Helix operated this laundering system from 2014 to 2017. Only on August 18, 2021, Harmon pleaded guilty to conspiracy to commit money laundering. However, Harmon was only recently sentenced by U.S. District Judge Beryl Howell of the Federal court in Washington, DC.
This investigation included several personnel and investigation authorities, including those from the Justice Department's Criminal Division, the IRS Criminal Investigation, and the FBI's Cyber Division.
As a result, he was awarded a three-year prison sentence with three years of supervised release and forfeiture of multiple items, including $311,145,854, along with cryptocurrencies, real estate, and bank assets totaling over $400 million. As large as it seems, his sentencing was lenient as he cooperated with the investigations and accepted responsibility by pleading guilty.
Bitcoin prices have catapulted over US$84,000 due to Donald Trump's win in the 2024 U.S. presidential elections. Bitcoins have been used by many such illicit operations globally but have also been caught and seized eventually. Successful cases like this might deter many from using the crypto asset for money laundering or as a means to deal with drugs and any illicit substance or activities.
