Bitcoin mixer operator sentenced to 3 years for laundering over $300m

Larry Harmon, an Ohio resident, has been sentenced to three years in prison for laundering more than $300 million worth of Bitcoin through his darknet service, Helix, according to Bloomberg.

The platform operated a tool designed to obscure the origins of cryptocurrency transactions, enabling users, primarily criminals, to move funds undetected, according to the U.S. Justice Department

The service was active from 2014 to 2017, during which Harmon partnered with major darknet marketplaces like AlphaBay to process illegal transactions involving drug sales, stolen data, and counterfeit goods.

Unlicensed money-transmitting

Harmon pleaded guilty in 2021 to operating Helix as an unlicensed money-transmitting business and conspiring to launder funds. By mixing over 350,000 Bitcoin (BTC), prosecutors said he facilitated illicit activity on a global scale. 

U.S. District Judge Beryl Howell also ordered Harmon to forfeit $311 million, the value of the Bitcoin laundered through Helix. Previously, Harmon had been fined $60 million by the U.S. Treasury for violating anti-money laundering regulations.

Darknet mixers like Helix appeal to criminals seeking to exploit the pseudonymous nature of cryptocurrencies. While Bitcoin transactions are recorded on a public ledger, mixers obscure their origins by breaking the link between sender and recipient, complicating law enforcement efforts to trace illicit activities.

Harmon’s cooperation in other prosecutions, including the conviction of Roman Sterlingov, operator of the Bitcoin Fog mixing service, led to a reduced sentence. Prosecutors highlighted Harmon’s extensive assistance and expressed confidence that his case would deter similar operations​

However, the fallout extended beyond Larry Harmon. After his arrest in 2020, authorities discovered his brother, Gary Harmon, used stolen credentials to recover Bitcoin stored in an IRS evidence locker, per Bloomberg. 

Gary was later sentenced to four years in prison for accessing and spending part of the seized cryptocurrency on luxury items.