Ohio CEO Pleads Guilty to Operating Darknet Bitcoin ‘Mixer’ Service
An Ohio CEO has recently pleaded guilty to running a darknet-based Bitcoin ‘mixer’ service that laundered over $300 million. Larry Dean Harmon, a resident of Akron and CEO of Bitcoin media site Coin Ninja, was revealed to be the mastermind behind the underground cryptocurrency laundering service known as Helix from 2014 to 2017.
Harmon, who is also the creator of crypto-wallet provider DropBit, collaborated with darknet vendors during his tenure at Helix to launder more than 350,000 Bitcoin that was generated through illicit activities such as drug trafficking.
Through partnerships with various darknet markets like AlphaBay, Evolution, and Cloud 9, Helix offered customers a way to send Bitcoin to recipients while keeping the source of the cryptocurrency untraceable. For a fee of 2.5%, Helix would mix or tumble customers’ Bitcoin to make it unidentifiable. Harmon promoted Helix on the dark web as a means for customers to conceal their transactions from law enforcement.
Court documents revealed that Helix was connected to the prominent darknet search engine “Grams,” which was also operated by Harmon. Following a warrant for his arrest in February 2020, Harmon was taken into custody and ultimately pleaded guilty to his involvement in the money-laundering conspiracy on August 18.
As part of his plea agreement, Harmon agreed to forfeit more than 4,400 Bitcoin, currently valued at over $200 million, along with other seized assets related to the criminal scheme. A sentencing date for Harmon has not been scheduled yet, but he could face a maximum prison term of 20 years and a fine of up to $500,000 or double the value of the property involved in the illicit transactions.
In addition to potential prison time and fines, Harmon may also be subject to up to three years of supervised release and mandatory restitution. Acting US Attorney Channing Phillips for the District of Columbia condemned the activities of darknet markets and their vendors, emphasizing the commitment of law enforcement to dismantle criminal operations and hold perpetrators accountable.