Larry Harmon Sentenced for Crypto Mixer Money Laundering Case

• Larry Harmon, Helix founder, was sentenced to three years for laundering over $311M via darknet crypto transactions.
• FBI arrests hacker for SEC’s X account breach, linked to fake Bitcoin ETF post and brief market surge.

Founder of the Helix crypto mixer, Larry Dean Harmon, had three years in prison condemned for his participation in a major money laundering conspiracy. Arrested in 2020, Harmon acknowledged using his platform—which was mostly used by darknet markets—that he had laundered over $311 million worth of crypto.

Though many might find the court’s ruling to be forgiving, it reflects his cooperation with police in earlier investigations. Harmon was told to turn up assets valued more than $400 million, including real estate, bank assets, and crypto holdings, in addition to his prison term.

HELIX FOUNDER GETS LENIENT SENTENCE

Larry Harmon, the OG behind crypto mixer Helix, just got a 3-year prison sentence his conviction for money-laundering.

He forfeited $311M cash + $400M+ in crypto, real estate, and assets.

The light sentence? Cooperation in the Bitcoin Fog… pic.twitter.com/WEhNvZ1J8y

— Mario Nawfal’s Roundtable (@RoundtableSpace) November 16, 2024

Helix Operations and Larry Harmon Cooperation

Operating Helix between 2014 and 2017, Harmon helped users to hide the source of their money by facilitating about 354,468 crypto transactions. Since the site mostly served those involved in illegal activity, darknet users found it to be quite important.

Years before his ultimate arrest, Harmon freely closed Helix and its companion service, Grams, despite their contentious position. His cooperation upon detention was crucial in developing cases against other crypto-based criminal activity.

Harmon’s lowered sentence was mostly due to his major support in the prosecution against Roman Sterlingov, the operator of another crypto mixer, Bitcoin Fog.

Mostly on evidence and testimony from Harmon, Sterlingov was found guilty and sentenced to more than 12 years in jail. Originally seeking a 75-month term for Harmon, prosecutors had decided to impose a lesser penalty based much on his desire to support investigations and show sincere regret for his acts.

The case emphasizes the changing legal environment around crypto mixers, which have garnered more attention from authorities because of their part in enabling financial crimes.

Although the technology itself is not intrinsically illegal, criminal networks’ use of it has caused law enforcement to adopt a more forceful posture. The Harmon case acts as a warning as well as a precedent for next charges using like platforms.

On the other hand, CNF previously highlighted that the FBI had apprehended a hacker connected to SEC’s X account attack. Eric Council Jr., a 25-year-old Athens, Alabama, native, used a SIM-swapping technique to access the social network account.

The attack resulted in the publication of a fictitious Bitcoin ETF announcement, therefore momentarily driving increased market activity.