Larry Harmon, the man behind the Helix cryptocurrency mixer, has been sentenced to three years in prison after being convicted of laundering over 350,000 Bitcoin, valued at more than $300 million at the time. His sentence was lighter than expected due to his cooperation with authorities, particularly in helping to take down another major figure in the dark web, Roman Sterlingov, the operator of Bitcoin Fog.
The Role of Helix in Money Laundering
Harmon ran Helix, a cryptocurrency mixing service, from 2014 to 2017. Cryptocurrency mixers, like Helix, are designed to anonymize digital transactions, making it harder for authorities to trace the origin of funds. By using the service, criminals could hide the source of their Bitcoin, which was often obtained through illegal activities, such as drug dealing or other darknet crimes. Helix worked alongside Grams, a popular darknet search engine, which Harmon also ran.
Helix’s main function was to break up large transactions into smaller parts, mixing them with other Bitcoin to hide their origins. This made it almost impossible to track where the money came from or where it was going. Through this service, Harmon helped launder an estimated 350,000 Bitcoin over several years. While the value of Bitcoin was much lower at the time, the total amount laundered was still staggering—about $300 million at its peak.
Harmon’s involvement in the dark web didn’t stop with Helix. He ensured that the service was integrated with darknet markets, where illegal goods and services were bought and sold. To make it easier for these markets to use Helix, Harmon developed an Application Programming Interface (API) that allowed them to integrate the mixer directly into their Bitcoin withdrawal systems. This made it simple for criminals to hide the Bitcoin they earned through illicit transactions.
A Lighter Sentence Due to Cooperation
In February 2020, Harmon was arrested for his involvement in the Helix operation. Initially, he faced up to 20 years in prison, as his crimes were considered serious and wide-reaching. However, Harmon’s cooperation with authorities significantly reduced his sentence. He helped prosecutors in their case against Roman Sterlingov, the operator of Bitcoin Fog, another crypto mixer. Sterlingov was arrested and sentenced to 12.5 years in prison, thanks in part to Harmon’s assistance.
Bitcoin Fog Mastermind Sentenced: $440M Darknet Money Laundering Scheme Exposed
Harmon’s decision to cooperate with law enforcement was key to the reduction in his sentence. Judge Beryl Howell, who oversaw the case, acknowledged that Harmon had shown remorse for his actions and had already begun to shut down the Helix operation two years before his arrest. Harmon also expressed regret for his role in helping criminals hide their illegal earnings, which the judge noted as a sign of his remorse and efforts to turn his life around.
As part of the sentence, Harmon was also ordered to forfeit over $311 million in assets, including cash, cryptocurrencies, real estate, and other valuables linked to his crimes. These assets were seized during the investigation and will be used to recover some of the ill-gotten gains from his illicit activities. The forfeiture serves as a financial penalty for Harmon’s role in the money laundering scheme.
Family Ties and Additional Legal Trouble
The case took a further twist with the involvement of Harmon’s younger brother, Gary Harmon. After Larry’s arrest, Gary gained access to Larry’s passwords and used them to transfer 712 Bitcoin, valued at over $5 million, from Larry’s seized wallets to his own account. This led to Gary’s arrest in 2021 for wire fraud and obstruction of justice.
Gary Harmon was sentenced to four years in prison and was ordered to return $20 million in cryptocurrency. His actions added another layer of complexity to the case, showing how deeply the criminal activity extended within the family.
Despite the seriousness of his crimes, Harmon’s lighter sentence illustrates the potential benefits of cooperating with authorities. His assistance in the investigation of other dark web criminals helped him avoid a much harsher penalty. Still, the case serves as a reminder of the illegal use of cryptocurrencies and the serious legal consequences of engaging in such activities.
