An Ohio-based operator of a cryptocurrency mixing service that is known for facilitating illegal activities like money laundering and cybercrime was recently sentenced to three years imprisonment by US courts as part of their ongoing efforts to regulate such services, which often mask digital currency transactions from law enforcers.
Larry Harmon Receives Three-Year Sentence and Ordered to Forfeit $700 Million
Larry Harmon, developer of Helix cryptocurrency mixer, was sentenced to three years in prison after his plea of guilty in 2021 on charges of conspiring to launder money related to Helix, an service implicated in laundering over $300 million worth of illicitly obtained Bitcoin via drug trafficking operations. Harmon also operated Grams – a darknet search engine providing access to illegal goods such as drugs and counterfeit documents – alongside Helix.
Helix and Grams operated together on the dark web to target narcotics market customers, with Harmon profiting from transaction commissions and fees. According to the Department of Justice, Harmon voluntarily suspended Helix between 2014 and 2017 prior to being arrested in 2020.
On November 15th, Judge Beryl Howell issued her ruling in District of Columbia and sentenced Harmon to an additional three-year supervised release following his incarceration. Prosecuters originally sought six years, however due to Harmon’s cooperation with authorities (notably his cooperation during a trial against another crypto mixer operator and Helix’s premature discontinuation), and Helix ceasing their services early, her sentence was reduced accordingly.
Harmon is also required to forfeit over $700 Million in cash, physical assets and digital assets as forfeiture.
Increasing Legal Scrutiny on Crypto Mixer Services
Harmon’s sentencing follows another conviction, where Bitcoin Fog’s operator received a 12.5-year prison term for running a crypto laundering service since 2011. Both cases highlight increasing legal pressures placed upon operators of crypto mixers.
Roman Storm, co-founder of Tornado Cash, will take center stage when his trial for four related charges begins in April 2025. If found guilty, Storm may face a 45-year prison term. His case has garnered considerable interest and support within the crypto space; many notable individuals and entities have made donations towards his legal defense fund.
