The United States Department of Justice (DOJ) settled the loss of over $400 million in cryptocurrency and other properties connected to Helix, an early Bitcoin-era darknet blending service, according to a declaration launched Thursday.
The properties were taken from Larry Harmon, the operator of Helix, which processed deals in between 2014 and 2017. The crypto mixer was developed to obscure the source and location of Bitcoin (BTC) that was connected to darknet markets.
The loss follows a Jan. 21 order by the United States District Court for the District of Columbia, officially moving ownership of the properties to the federal government. The last court order offers the federal government legal title to the taken digital properties, property and monetary properties linked to Helix’s operations.
The advancement marks the legal endpoint of among the most considerable early Bitcoin mixer prosecutions to move through United States courts. The case highlights how significant crypto-related enforcement actions can take years to totally deal with, even after criminal conduct has actually ended.
Helix processed numerous countless Bitcoin
According to the DOJ, Helix processed a minimum of 354,468 Bitcoin throughout its operation, worth about $300 million at the time of the deals. District attorneys connected the activity to darknet drug markets looking for to wash their prohibited profits.
Harmon likewise ran Grams, an online search engine developed to support significant darknet markets active at the time.
Detectives stated Helix’s application shows user interface permitted markets to incorporate the mixer straight into their Bitcoin withdrawal systems, making it possible for massive laundering activity.
The DOJ stated private investigators traced 10s of millions from darknet markets to Helix.
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Loss settled years after sentencing
Harmon was jailed in February 2020 and pleaded guilty in August 2021 to conspiracy to dedicate cash laundering. He was sentenced in November 2024 to 3 years in jail.
At the time, the court purchased Harmon to surrender properties valued at more than $400 million. Recently’s order settled the loss, moving clear legal title to the United States federal government.
As formerly reported by Cointelegraph, his sentence was decreased after working together with private investigators, consisting of affirming in the Bitcoin Fog case versus Roman Sterlingov.
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