U.S. DOJ Sentences Darknet Crypto Mixer Operator For Laundering Over $300M in Assets

The United States Department of Justice (DOJ) has sentenced the 41-year-old Ohio man Larry Dean Harmon to three years in prison for operating the now-defunct darknet cryptocurrency mixer Helix. 

According to an official release from the DOJ, Helix processed around 354,468 bitcoins (BTC) valued at $311 million while it operated from 2014 to 2017. 

Harmon’s Arrest And Guilty Plea

United States authorities indicted Harmon in 2019 for violating the Bank Secrecy Act (BSA), conspiring to launder monetary assets, and operating unlicensed money-transmitting businesses. 

Prior to his arraignment, Harmon was the CEO of the crypto exchange Coin Ninja, which also provided mixing services and offered a digital asset wallet called DropBit. The services, including Helix, were classified as unlicensed money-transmitting businesses and shut down following Harmon’s arrest.

Between 2020 and 2021, Harmon pleaded guilty to the charges brought against him, and the Financial Crimes Enforcement Network (FinCEN) imposed a $60 million penalty on him for willfully violating anti-money laundering laws. By October 2022, Harmon had not paid the penalty charge, so the DOJ filed a lawsuit against him, asking a court to impose an order for him to pay the penalty plus interest and costs.

It is worth mentioning that the court deferred the Helix founder’s sentencing pending his cooperation with the United States government.  

Three Years of Supervised Release

In Harmon’s sentencing announcement, the DOJ revealed that Helix was connected to other darknet markets, including Grams, another darknet search engine operated by the defendant. Harmon developed an Application Program Interface (API) that allowed major darknet markets to integrate Helix into their platforms and BTC withdrawal systems. 

Harmon customized Helix features to ensure compatibility with significant darknet markets, making sure he received a percentage of the transactions as his commission and fees for helping launder tens of millions of dollars in illicit proceeds.

“Harmon worked to ensure Grams and Helix connected to or otherwise supported all of the major darknet markets at the time… Harmon also customized features of Helix to ensure compatibility with significant markets,” the DOJ added.

A part of Harmon’s sentencing includes three years of supervised release, a forfeiture monetary judgment of over $311 million, and an order to forfeit seized cryptocurrencies, real estate, and assets worth more than $400 million.