Larry Dean Harmon of Ohio was formally convicted on Friday of running the darknet crypto mixer Helix amid allegations that he processed more than $300 million worth of crypto tokens between 2014 and 2017.

Harmon is sentenced to three years in prison and forfeiture of assets worth up to $400 million for his role in laundered over $300 million value of Bitcoin tokens to drug markets on the obscure web.

According to U.S. authorities, Harmon used the platform to launder drug traffickers’ money, facilitating the transfer of more than 350,000 BTC between 2014 and 2017. Receives three-year sentencewith relatively brief experience, but faces a forfeiture judgment of $311,145,854 and the forfeiture of all seized assets worth at least $400 million.

A “lighter sentence” in a money laundering case

Court documents show that Harmon operated Helix from 2014 to 2017 and during that time laundered up to $300 million worth of Bitcoin on behalf of drug traffickers. After hearing the case and Harmon’s guilty plea, U.S. District Judge Beryl Howell sentenced Harmon to three years in prison.

In addition to his prison sentence, Harmon will serve three years of supervised release, pay the court up to $311 million and surrender all seized assets, including cryptocurrencies and real estate, worth at least $400 million.

An Ohio man was sentenced to three years in prison and ordered to forfeit more than $400 million in assets for running Helix, a cryptocurrency “mixer” on the obscure web. @DOJCrimDiv #FollowTheMoney #IRSCIhttps://t.co/4IRC4fDbPf

— IRS Criminal Investigation (@IRS_CI) November 15, 2024

Helix: Harmon’s role in laundering drug money

Spiral was a popular cryptocurrency mixing service on the obscure web and a favorite place for drug traffickers looking to launder their money. According to a press release from the Department of Justice, the mixing site processed 354,468 BTC, or approximately $311,145,854, during the transaction.

The data shows that most of these funds go to obscure web drug markets, with some going to customers in the District of Columbia. Harmon collected a percentage of these transactions in the form of fees and commissions for running the service.

Harmon asserted that Helix was associated with Grams, a darknet search engineand collaborated with most darknet markets in laundering operations. Harmon used its proprietary API to integrate Helix with its BTC withdrawal system on darknet markets.

It also tweaked the API to make it more compatible with other markets. On August 18, 2021, Harmon pleaded guilty to conspiracy to commit money laundering.

Harmon’s cooperation paved the way for a lighter sentence

Initially, Harmon faced a possible 20 years in prison, even though prosecutors had asked for a minimum sentence of 75 months. However, the presiding judge imposed only a three-year sentence, crediting Harmon for his assistance in the case. As a result, on November 8 last year, Roman Sterlingov was sentenced to 12.5 years in prison.

Judge Howell acknowledged Harmon’s efforts to shut down the platform two years before authorities charged him. The court saw the move as a sign of reform by Harmon even before the case was filed.

Featured image from CRI Group, chart from TradingView