WASHINGTON—An Ohio man has pleaded guilty to a money laundering conspiracy arising from his operation of Helix, a Darknet-based cryptocurrency laundering service, the Department of Justice reported.
According to court documents, Larry Dean Harmon, 38, of Akron, admitted he operated Helix from 2014 to 2017. Helix functioned as a Bitcoin “mixer” or “tumbler,” allowing customers, for a fee, to send Bitcoin to designated recipients in a manner that was designed to conceal the source or owner of the Bitcoin. Helix was linked to and associated with “Grams,” a Darknet search engine also run by Harmon. Harmon advertised Helix to customers on the Darknet to conceal transactions from law enforcement, officials said.
“By holding Harmon accountable, the department has disrupted the unlawful money laundering practices of these dangerous criminal enterprises,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Justice Department, together with our law enforcement and regulatory partners, will continue to take enforcement actions to identify and impede those who use illicit means for financial gain, as well as those who use the Darknet to facilitate and obscure their criminal conduct.”
‘Growing Scourge’
“Darknet markets and the dealers who sell opioids and other illegal drugs on them are a growing scourge,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “They may try to hide their identities and launder millions in sales behind technologies like Helix. But the department and its law enforcement partners will shine a light on their activities, dismantle the infrastructure such criminal marketplaces depend on, and prosecute and convict those responsible.”
According to the DoJ, Harmon admitted that Helix partnered with several Darknet markets, including AlphaBay, Evolution, Cloud 9 and others, to provide bitcoin money laundering services for market customers. In total, Helix moved over 350,000 Bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from Darknet markets.
$200M in Bitcoin Forfeited
Harmon further admitted that he conspired with Darknet vendors and marketplace administrators to launder such bitcoins generated through illegal drug trafficking offenses on those Darknet marketplaces, the DOJ added.
As part of his plea, Harmon also agreed to the forfeiture of more than 4,400 Bitcoin, valued at more than $200 million at current prices, and other seized properties that were involved in the money laundering conspiracy.
Harmon will be sentenced at a date to be determined and faces a maximum penalty of 20 years in prison, a fine of $500,000 or twice the value of the property involved in the transaction, a term of supervised release of not more than three years, and mandatory restitution, the DOJ said.