Ohio Man Sentenced To Prison Over Money Laundering Conspiracy

Larry Dean Harmon has been sentenced to three years in prison for his involvement in cryptocurrency money laundering.

At a Glance

Larry Dean Harmon operated a Bitcoin mixer called Helix, facilitating over $300 million in illegal transactions.
Helix was popular among digital drug dealers to launder proceeds from illicit deals.
Harmon pleaded guilty to conspiracy to commit money laundering.
The DOJ highlighted the boldness of his operations in facilitating other crimes.

Cryptocurrency Mischief

Harmon ran a Bitcoin mixer known as Helix, a service highly sought after by online drug dealers for laundering illicit proceeds. Between 2014 and 2017, Helix processed approximately 354,468 bitcoins, equivalent to about $311 million. Helix was linked to a darknet search engine called Grams, also owned by Harmon. The U.S. Department of Justice charged Harmon in 2020, citing his role in laundering over $300 million through Helix. Harmon pleaded guilty to the charges in August 2021.

Operator of Helix Darknet Cryptocurrency ‘Mixer’ Sentenced in Money Laundering Conspiracy Involving Hundreds of Millions of Dollars https://t.co/fbFCuecKt6 @IRS_CI @FBIWFO @NDOHnews

— U.S. Attorney DC (@USAO_DC) November 15, 2024

Alongside this, Helix facilitated illicit transactions through partnerships with major darknet markets, including AlphaBay. Harmon retained a percentage of each transaction as commissions and fees, benefiting significantly from these unlawful activities.

A Legal Takedown

Harmon was sentenced to three years in prison by U.S. District Judge Beryl Howell. Apart from serving time, Harmon must forfeit cryptocurrencies, real estate, and monetary assets worth over $400 million. Despite their façade as privacy tools, crypto mixers like Helix can facilitate numerous criminal activities. Don Fort, the chief of IRS Criminal Investigation, remarked that Helix’s “brazenness” was the “most appalling aspect” of its operations.

“There are bad actors and then there are criminals who facilitate hundreds of other crimes,” said Don Fort, highlighting the scale of crime often intertwined with crypto mixers. The case emphasizes the ongoing efforts by the DOJ and international partners to track and dismantle illicit financial activities both online and offline.

Legal Precedents and Future Implications

This case is part of a broader crackdown on cryptocurrency mixers, with additional actions against others like Roman Sterlingov’s Bitcoin Fog and Sinbad.io. Harmon’s case underscores how while crypto mixers are not explicitly illegal, they must register as money transmitters in the U.S. and comply with anti-money laundering regulations. Helix and other such services are designed to obscure trails of cryptocurrency transactions, making it challenging for law enforcement to pursue illegal operations.

Mixers are used to protect financial privacy, especially in oppressive regimes, but they must steer clear of dealing with sanctioned entities. The case against Harmon represents the challenges authorities face as they navigate these complex financial webs, aiming to ensure that such services remain compliant while being vigilant against potential misuse.