Larry Din Harmon, founder of the cryptocurrency-mixing service Helix and CEO of Coin Ninja, pleaded guilty to laundering more than $300 million. The Ohio native faces up to 20 years in prison and multimillion-dollar fines.
Ohio Resident Pleads Guilty to Operating Darknet-Based Bitcoin ‘Mixer’ That Laundered Over $300 Million https://t.co/eWFjY7jr6c
— Justice Department (@TheJusticeDept) August 18, 2021
According to a press release from the U.S. Department of Justice, Harmon pleaded guilty to laundering more than 350,000 BTC through Helix from 2014 to 2017. The defendant said he knew the proceeds were illicitly obtained and processed through the service. He said he deliberately cooperated with darknet marketplaces to provide similar services to their users.
During the proceedings, authorities confiscated 4,400 BTC worth about $197 million at the time of writing. A date for the final verdict has not yet been set — prosecutors said they want to give the Helix operator time to work with investigators.
During earlier hearings, the defendant attempted to argue that Bitcoin is not money and hence could not be found guilty. However, Judge Beryl Howell rejected that argument.
“The term ‘money’ generally means a medium of exchange, a means of payment, or a store of value. This is true for Bitcoin,” she ruled.
Earlier Harmon was fined $60 million by the Financial Crimes Enforcement Network within the US Treasury. In this case, the DOJ first named cryptocurrency mixing a crime.
Earlier in April, U.S. authorities arrested the alleged operator of the Bitcoin Fog cryptocurrency mixing service, Roman Sterlingov. He was charged with laundering nearly $336 million through cryptocurrency and providing payment services without a license.