A prominent CEO from Ohio has recently admitted to running a darknet-based Bitcoin ‘mixer’ service that facilitated the laundering of over $300 million in cryptocurrency. Larry Dean Harmon, a resident of Akron and CEO of the Bitcoin media site Coin Ninja, was the mastermind behind the underground operation known as Helix for three years, from 2014 to 2017.
During this time, Harmon collaborated with darknet vendors to launder more than 350,000 Bitcoin that had been obtained through illicit activities such as drug trafficking. Helix worked in partnership with various darknet markets, including AlphaBay, Evolution, and Cloud 9, allowing customers to send Bitcoin to specified recipients while concealing the source of the funds.
For a fee of 2.5%, Helix would ‘mix’ or ‘tumble’ the customers’ Bitcoin to make it untraceable, providing a way for individuals to conceal their transactions from law enforcement. Court documents revealed that Helix was connected to the top search engine on the darknet, “Grams,” which was also operated by Harmon.
Harmon was taken into custody in February 2020 following a warrant for his arrest. On August 18, he pleaded guilty to his involvement in the Helix money-laundering scheme. As part of his plea deal, Harmon agreed to forfeit more than 4,400 Bitcoin, valued at over $200 million, along with other seized assets related to the criminal conspiracy.
While a sentencing date has yet to be determined, Harmon faces a maximum prison term of 20 years and a potential fine of up to $500,000 or twice the value of the property involved in the illegal transactions. Additionally, he could be subject to supervised release for up to three years and mandatory restitution.
Acting US Attorney Channing Phillips for the District of Columbia emphasized the detrimental impact of darknet markets and the individuals selling illegal drugs on these platforms. Despite efforts to conceal their identities and launder proceeds through services like Helix, law enforcement agencies are committed to dismantling such criminal operations and holding those responsible accountable for their actions.