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Larry Harmon, the mastermind behind one of the largest Bitcoin laundering operations in recent years, has bagged three years in prison. Harmon ran a mixing service that helped criminals, including drug traffickers, move illicit funds through Bitcoin. His operation enabled the concealment of hundreds of millions of dollars in illicit transactions. This serious breach of law contributed to the growth of illegal activities on the darknet.
A Darknet Empire Built on Bitcoin Laundering
In 2014, Larry Harmon launched Grams, a search engine for the darknet, an untraceable part of the internet where illegal goods and services are traded. His platform made it easier to find illicit items, including drugs, hacking tools, and stolen financial information.
Building on this success, Harmon developed Helix, a Bitcoin mixing service that scrambled crypto transactions. This initiative made it nearly impossible to trace the origin and destination of funds. Helix became a vital tool for criminals, especially drug dealers, who used it to move hundreds of millions of dollars without detection.
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Harmon’s service allowed these criminal networks to operate with a high degree of impunity. Prosecutors stated that Harmon’s actions helped illegal activities thrive by making it harder for law enforcement to trace and intercept illicit funds.
Larry Harmon’s Legal Takedown
Harmon was arrested in 2020 for money laundering and pleaded guilty in 2021 to his darknet operations. The presiding judge, Judge Beryl Howell, imposed a severe penalty, including a prison sentence and the forfeiture of $311 million. Despite the seriousness of the case, Harmon received some leniency for cooperating with the authorities.
The judge cited Harmon’s cooperation with the prosecution in other crypto-related investigations. Notably, his testimony in the trial of Roman Sterlingov, the operator of Bitcoin Fog, another major mixing service, played a significant role. Sterlingov was convicted earlier this year and sentenced to over 12 years.
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After Harmon’s arrest, authorities found 713 Bitcoin units worth $5 million missing from an IRS locker. Investigators traced the theft to his brother, Gary, who used Larry’s credentials to move the funds and flaunted a lavish lifestyle funded by the stolen assets.
Gary Harmon was also arrested and pleaded guilty. He was imprisoned for four years for his involvement in the Bitcoin theft and subsequent lavish spending.
A Cautionary Tale for the Crypto Underworld
Harmon’s fall from grace is a cautionary tale for those operating in the crypto underworld.
As cryptocurrency becomes more deeply embedded in legitimate and illicit economies, those who misuse it must understand the growing risks. Harmon’s story is a stark reminder that no one is invincible. The crypto world may offer opportunities for anonymity, but it also comes with the ever-present possibility of exposure.
