What you need to know:
- The US DOJ has seized more than $400 million in assets from Helix, a darknet crypto mixer run by Larry Dean Harmon.
- Harmon pleaded guilty to money laundering in 2021 and was sentenced to 36 months in prison.
- The Helix case highlights regulatory challenges with privacy-focused crypto tools and highlights the need for anti-money laundering measures.
The US Department of Justice (DOJ) has announced an action to seize more than $400 million in assets seized from Helix, a cryptocurrency mixing service on the darknet.
Helix was one of the best bitcoin mixers on the dark web in the past. It was run by Larry Dean Harmon. From 2014 to 2017, it processed approximately 354,468 bitcoins (worth more than $300 million at the time), mainly for darknet drug markets.
Research
The investigation by the IRS Criminal Investigation Cyber Crimes Unit and the FBI revealed that Harmon had been the one to conceal the origin of the illegal funds. In 2021, Harmon entered a guilty plea to conspiracy to commit money laundering and was sentenced to 36 months in prison.
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Implications for crypto regulation
The Helix case is a good example of the difficulties in regulating privacy-oriented crypto tools. A mixer can be used for a good result, but more often it is a channel for the financing of crime.
The DOJ lawsuit against Helix shows that the only way to catch the criminals and seize their crypto assets is for law enforcement authorities to work together internationally and use the right blockchain analysis tools.
Overall, the Helix instance can be seen as a milestone in the ongoing battle against crypto mixers and as a warning to the entire market that companies must implement strict anti-money laundering regulations.
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