Authorities sentenced the operator of an infamous Bitcoin mixer service, dubbed Helix, to three years in federal prison.
Notorious Helix Bitcoin tumbler operator sentenced to three years in prison
Larry Dean Harmon, a 41-year-old Ohio man, ran the elaborate operation between 2014 and 2017.
The illicit platform served as a critical laundering tool for dark web marketplaces, allowing cybercrooks to obfuscate over $311 million worth of Bitcoin at the time—worth roughly $32 billion today.
The rise and fall of Helix and Grams
Harmon’s descent into the cryptocurrency underworld began in 2014, with the launch of dark-web search engine Grams. Shortly after, he unveiled Helix, a cryptocurrency mixer (also called a tumbler) designed to anonymize Bitcoin transactions.
Tumblers typically achieve obfuscation by pooling and redistributing users’ funds, severing the traceable link between senders and recipients.
He then proceeded to market his service explicitly to those seeking to evade detection, flaunting the following text on the service’s website:
“No one has ever been arrested just through Bitcoin taint, but it is possible and do you want to be the first?”
Helix, a Dark Web hub for Cybercriminals
Helix soon became a hub for notorious players in the cybercrime world. Harmon’s partnership with Alphabay, once known as the largest dark-web marketplace for illicit goods, further cemented Helix’s role.
During its operation, Helix helped cybercriminals launder 354,468 Bitcoin and took a 2.5% cut of each transaction. However, following Alphabay’s takedown in 2017, Harmon started winding down Helix and Grams, shifting his focus to Coin Ninja, another crypto project that, this time, positioned itself as a legitimate business.
Culprit dodged a potential sentence of more than 20 years
In February 2020, federal authorities arrested Harmon. He was charged with money laundering, conducting unlicensed money transmission, and operating an unlicensed money transmission business, with the possibility of over 20 years in prison.
Harmon pleaded guilty in August 2021, forfeiting over 4,400 Bitcoin along with other assets and properties, and receiving a $60 million fine from the Financial Crimes Enforcement Network (FinCEN).
Family Betrayal
In a twist of events, Harmon’s younger brother, Gary, used Larry’s credentials to access a seized crypto storage device, stealing more than 712 Bitcoin in the process. He then went on a spending spree, buying a luxury condo in Cleveland and even posing for photographs in a bath full of cash.
In 2023, Gary Harmon was sentenced to four years and three months in prison for theft.