In a new development, Judge Beryl Howell of the District Court for the District of Columbia has pronounced a three-year jail term for the founder of the Helix crypto mixer, Larry Harmon. Notably, the presiding judge meted out the punishment because he found Harmon guilty of money laundering.
It is worth noting that the Helix crypto mixer founder's sentencing appeared in a publicized document by the United States Department of Justice (DOJ). In the November 15 press release, the DOJ stated that between 2014 and 2017, the convicted founder facilitated transactions worth about $300 million.
Harmon’s Money Laundering Technique
Like every busted scam venture, Harmon's operational modalities have unique features that allowed it to remain in the illicit business for about three years. According to the publicized report, Harmon operates a darknet mixer that aids scam perpetrators in laundering Bitcoin (BTC).
To facilitate the hideous operations, the convicted founder connected the mixer with Grams, a dark net search engine. “Helix was one of the most popular mixing services on the darknet and was highly sought after by online drug dealers who needed to launder their illicit proceeds. Helix processed approximately 354,468 bitcoin — the equivalent of approximately $311,145,854 in U.S. dollars at the time of the transactions — on behalf of its customers, including customers in the District of Columbia.”
After each transaction, Harmon always retains part of the realized amount as his commission. Meanwhile, apart from the Grams network, he developed an Application Program Interface (API) that enables malicious actors to integrate their Bitcoin withdrawal wallets with Helix.
Arrest and Punishment
Considering the degree of his offense, particularly the massive amount laundered via dubious means, Harmon deserved about twenty years of prison term. However, the judge only pronounced a three-year stint out of leniency for good cooperation levels before and after his arrest.
For context, Harmon agreed to stop Helix operations even before law enforcement agencies apprehended him in February 2020. He was also remorseful about his actions, evidenced by a guilty plea in August 2021. In addition to the prison term, he will forfeit $311 million in penalty fees to compensate for the laundered funds.
