[Bitcoin Laundering Sentence]

In this blog series we spotlight one of the stories from our cybersecurity newsletter, Beacon.

Larry Dean Harmon, a 41 year-old who lives in Ohio, was sentenced to three years in prison for running Helix, a dark web cryptocurrency mixer that laundered over $300 million worth of Bitcoin from 2014 to 2017. The sentence also includes three years of supervised release and a forfeiture money judgment of $311,145,854 in addition to seized assets exceeding $400 million.

Harmon operated Helix as part of a sophisticated scheme to obscure Bitcoin transactions for dark web users, particularly drug dealers. Helix worked in conjunction with Grams, a dark web search engine also developed by Harmon, to attract users seeking anonymity for their illegal transactions.

Court documents revealed that Helix processed approximately 354,468 Bitcoin during its operation, valued at $311 million at the time. Many of these funds originated from or were destined for dark web drug markets. Harmon earned commissions and fees from these transactions, cementing Helix’s reputation as a go-to tool for laundering illicit proceeds.

To streamline operations and expand Helix’s reach, Harmon developed an API that allowed dark web markets to integrate Helix directly into their Bitcoin withdrawal systems. Investigators traced tens of millions of dollars in dark web market transactions directly to Helix.

On August 18, 2021, Harmon pleaded guilty to conspiracy to commit money laundering. His cooperation led to the forfeiture of significant assets, including cryptocurrencies, real estate, and monetary holdings valued at over $400 million. The Financial Crimes Enforcement Network also imposed a $60 million civil monetary penalty against Harmon.

The investigation and prosecution of Harmon involved collaboration across multiple agencies, including:

• The IRS Criminal Investigation Washington D.C. Cyber Crimes Unit.
• The FBI Washington Field Office.
• The Justice Department’s Office of International Affairs.
• The U.S. Attorney’s Offices for the District of Columbia and Northern District of Ohio.

Internal assistance was also crucial. The Attorney General’s Ministry of Belize and the Belize Police Department supported the investigation through coordination with the U.S. Embassy in Belmopan.

Harmon’s sentence marks a significant milestone in combating illicit cryptocurrency use, creating a precedent for the consequences of laundering money on the dark web.