An Ohio man named Gary James Harmon has been sentenced to four years and three months in prison for his involvement in stealing 712 bitcoin ($21m). These funds were originally seized by investigators following the arrest of his brother, Larry Dean Harmon. Larry Harmon was apprehended in February 2020 for running a dark web cryptocurrency mixer called Helix, which was used to launder over 350,000 bitcoin valued at over $300m at the time of the transactions, now worth $10.3bn.
During Larry Harmon’s arrest, law enforcement confiscated a cryptocurrency storage device containing funds generated by Helix, which were set for forfeiture. Despite efforts, investigators were unable to access the bitcoin stored on the device due to security features. Gary Harmon took advantage of his brother’s logins to recreate and access the wallets, transferring over 712 bitcoin to his own wallet. The digital currency was worth $4.8m at the time but has significantly appreciated since then.
Gary Harmon proceeded to launder the stolen funds through two online bitcoin mixers before using the digital currency for significant purchases. Following his arrest, he agreed to forfeit the stolen crypto, including over 647 bitcoin, 2 Ethereum, and 17.4 million Dogecoin, with a combined value exceeding $20m. Larry Harmon pleaded guilty to money laundering conspiracy in his case in August 2021.
Cryptocurrency mixers have become a popular method for criminals to launder illicit proceeds, prompting the US government to take action. In May 2022, the government sanctioned Blender.io, one of the most popular mixers used by North Korean threat actors. Despite this, there are still numerous alternatives available for cyber-criminals to utilize.
The case of the Harmon brothers highlights the risks and consequences associated with engaging in illicit activities involving cryptocurrency. The sentencing of Gary James Harmon serves as a reminder of the legal repercussions individuals may face for participating in criminal behavior within the digital asset space.