Highlights:
- Harmon ran Helix from 2014 to 2017, laundering over 350,000 BTC for criminals.
- Judge Howell granted leniency due to Harmon’s cooperation and Helix’s shutdown before his arrest.
- U.S. government cracks down on crypto mixers, sentencing Roman Sterlingov to 12.5 years.
Larry Harmon, the founder of the darknet cryptocurrency “mixer” Helix, has been sentenced to three years in prison for his role in money laundering activities. The sentencing was issued by Judge Beryl Howell of the District Court for the District of Columbia.
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Larry Dean Harmon https://t.co/9J703NSH8A pic.twitter.com/5wLqjil8Zh
— espresso & coconut milk (@TrendyHipster) November 15, 2024
Harmon Ran Darknet Helix, Laundering Over 350,000 BTC for Criminals
Harmon operated the crypto mixer Helix, which obscured transaction trails, allowing criminals to move money anonymously. Prosecutors emphasized that Helix helped hundreds of drug dealers evade detection while facilitating the transfer of millions in illegal funds.
Harmon ran Helix on the dark web from 2014 to 2017, facilitating the laundering of over 350,000 BTC, worth an estimated $300 million at the time. Helix operated alongside the Grams dark web search engine, which Harmon also managed. He was arrested in February 2020 and entered a guilty plea in August 2021.
Department of Justice stated:
“Harmon worked to ensure Grams and Helix connected to or otherwise supported all of the major darknet markets at the time. Harmon developed an Application Program Interface (API) to allow darknet markets to integrate Helix directly into their bitcoin withdrawal systems.”
Judge Grants Leniency to Harmon Due to Cooperation in Prosecuting Other Cases
Judge Howell recognized the seriousness of Harmon’s actions, calling his money laundering operation “large-scale” and “long-running.” Harmon faced up to 20 years in prison for the charges against him. However, she showed leniency due to Harmon’s cooperation in prosecuting other cases and his choice to shut down Helix two years prior to his 2020 arrest.
Harmon expressed remorse, admitting that greed had taken over. His testimony played a key role in convicting Roman Sterlingov, the operator of another Bitcoin mixer, Bitcoin Fog, who was sentenced to over 12 years in prison.
Along with his prison term, Harmon was ordered to forfeit $311 million, representing 354,468 Bitcoin at that time. He had also previously faced a $60 million fine from the U.S. Treasury Department. Harmon initially argued in court that Bitcoin was not money and, therefore, he could not be charged with money laundering.
US Government Continues to Crackdown on Crypto Mixers
Earlier this month, Roman Sterlingov, founder of Bitcoin Fog, was sentenced to 12.5 years in prison in the U.S. government’s crackdown on crypto mixers. This sentence is shorter than the prosecutors’ recommended 20- to 30-year term following his March conviction on money laundering and related charges. From 2011 to 2021, Bitcoin Fog helped move over 1.2 million Bitcoins, valued at about $400 million. Most of the transactions were linked to illegal activities like drug trafficking, identity theft, and child exploitation.
Bitcoin Fog founder Roman Sterlingov was sentenced to 12 and a half years in prison for laundering tens of millions of dollars in illegal drug transactions. Sterlingov provided cryptocurrency mixing services through Bitcoin Fog. https://t.co/3AYN7O4t0y
— Wu Blockchain (@WuBlockchain) November 9, 2024
Moreover, on November 1, the trial of Tornado Cash co-founder Roman Storm for money laundering and sanctions violations was postponed until April 2025. Storm and Semenov were charged last year with money laundering, sanctions violations, and running an unlicensed money-transmitting business.
A New York judge ruled on Friday that the criminal trial of Tornado Cash co-founder Roman Storm will be postponed to April 2025 to resolve disagreements disclosed by expert witnesses, and his hearing is scheduled for November 12. Storm is charged with three counts of facilitating…
— Wu Blockchain (@WuBlockchain) November 2, 2024
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