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Larry Dean Harmon of Ohio was officially sentenced Friday for running the Helix cryptocurrency mixer on the darknet over allegations that it had processed more than $300 million in crypto tokens between 2014 and 2017.
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Harmon receives a three-year sentence, plus forfeiture of assets of up to $400 million, for his role in Laundering of more than 300 million dollars. bitcoin token value for darknet drug markets.
According to US authorities, Harmon used the platform to help launder funds for drug traffickers, facilitating the transfer of more than 350,000 btc between 2014 and 2017. He gets a <a target="_blank" href="https://therecord.media/ohio-man-helix-crypto-sentenced” target=”_blank” rel=”nofollow”>three year sentencerelatively light compliance time, but faces a money forfeiture judgment worth $311,145,854 and forfeiture of all seized assets amounting to at least $400 million.
A 'lighter sentence' in money laundering case
According to court documents, Harmon operated Helix from 2014 to 2017 and, during this time, laundered up to $300 million in Bitcoins on behalf of drug traffickers. After hearing the case and with Harmon's guilty plea, U.S. District Judge Beryl Howell sentenced Harmon to three years in prison.
In addition to the prison sentence, Harmon will serve three years of supervised release, pay the court up to $311 million, and hand over all seized assets, including cryptocurrency and real estate, which amount to at least $400 million.
<blockquote class="twitter-tweet”>
An Ohio man was sentenced to 3 years in prison and ordered to forfeit more than $400 million in assets for operating Helix, a darknet cryptocurrency “mixer.” <a target="_blank" href="https://twitter.com/DOJCrimDiv?ref_src=twsrc%5Etfw” rel=”nofollow”>@DOJCrimDiv <a target="_blank" href="https://twitter.com/hashtag/FollowTheMoney?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#FollowTheMoney <a target="_blank" href="https://twitter.com/hashtag/IRSCI?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#IRSCIhttps://t.co/4IRC4fDbPf
— IRS Criminal Investigation (@IRS_CI) <a target="_blank" href="https://twitter.com/IRS_CI/status/1857541148262412432?ref_src=twsrc%5Etfw” rel=”nofollow”>November 15, 2024
Helix: Harmon's role in laundering drug money
<a target="_blank" href="https://nairametrics.com/2024/11/16/bitcoin-mixer-owner-sentenced-to-3-years-in-prison-for-laundering-over-300-million/” target=”_blank” rel=”nofollow”>Propeller was a popular cryptocurrency mixing service on the darknet and a favorite destination for drug traffickers who wanted to launder their money. According to a press release from the Department of Justice, the mixing site processed 354,468 btc, or approximately $311,145,854, during the transactions.
Records show that most of these funds are destined for darknet drug markets and some to clients based in the District of Columbia. Harmon charged a percentage of these transactions as fees and commissions for running the service.
Harmon claimed that Helix was linked to Grams, a dark web search engineand worked with most darknet markets as part of laundering operations. Harmon used its proprietary API to integrate Helix into the darknet markets' btc withdrawal system.
He also customized the API to make it more compatible with other marketplaces. On August 18, 2021, Harmon pleaded guilty to conspiracy to commit money laundering.
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Harmon's cooperation paved the way for a lighter sentence
Harmon initially faced a possible 20-year sentence, even though the prosecutor campaigned for at least 75 months in prison. However, the presiding judge only imposed a three-year sentence, and credited Harmon for his help in this case. This resulted in Roman Sterlingov being sentenced to 12.5 years on November 8.
Judge Howell credited Harmon's effort to shut down the platform two years before authorities charged him. The court considered this move a sign that Harmon had reformed, even before the case was filed.
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