An Ohio man operating a cryptocurrency money laundering service has pleaded guilty to money laundering conspiracy in federal court.
On Tuesday, Larry Dean Harmon, 38, of Akron, Ohio, admitted to running “Helix,” a dark web Bitcoin mixer. Together with his request, Harmon agreed to confiscate more than 4,400 bitcoins-worth more than $200 million at today’s current market prices, as well as other items involved in the money laundering program.
Harmon faces up to 20 years in prison, a fine of $500,000, or twice the value of the property involved in the plan, a supervised release period of no more than three years, and compulsory restitution.
Between 2014 and 2017, customers who paid for “Helix” were allowed to send bitcoin to individual recipients in a way that hides the “source” or “owner” of the bitcoin.
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Harmon also runs “Grams”, a search engine on the dark web that customers used to use to hide their transactions from law enforcement. Helix promotes “Grams” to new and existing users.
Harmon revealed that he cooperates with a number of dark web markets including AlphaBay, Evolution, Cloud 9, etc. to provide customers with bitcoin money laundering services. In total, Helix has transferred more than 350,000 bitcoins on behalf of customers-worth more than $300 million at the time of the transaction. Most Bitcoin comes from the dark web market.
In addition, Harmon stated that he cooperates with other dark web services and administrators to clean up bitcoins generated by illegal drug trafficking crimes.
Kenneth A. Polite Jr., Assistant Attorney General of the Criminal Division of the Department of Justice, said in a statement: “By holding Harmon to account, the Department of Justice has undermined the illegal activities of these dangerous criminal enterprises. Money laundering.” Press release.
“The Ministry of Justice will continue to take enforcement actions with our law enforcement and regulatory partners to identify and stop those who use illegal means for financial gain, as well as those who use the dark web to promote and cover up their criminal activities,” politely Concluded.
“The dark web market and the distributors who sell opioids and other illegal drugs on it are a growing scourge,” said Channing D. Phillips, acting U.S. Attorney for the District of Columbia, in a press release.
“They may try to hide their identities and use technologies such as Helix to launder millions of dollars in sales. But the department and its law enforcement partners will expose their activities, dismantle the infrastructure on which such criminal markets rely, and Prosecute and convict those responsible,” Phillips concluded.
Currently, the trial date has not yet been determined.
