Larry Harmon, the operator of the Helix cryptocurrency mixer, received a three-year prison sentence for laundering over 350,000 Bitcoin (BTC). His cooperation in the Bitcoin Fog case earned him a significantly reduced sentence.
Leniency for Cooperation in Bitcoin Fog Case
Harmon faced up to 20 years in prison but was sentenced to just three years due to his assistance in prosecuting Roman Sterlingov, the operator of the Bitcoin Fog mixer. Sterlingov received a 12.5-year sentence on November 8. District Court Judge Beryl Howell noted Harmon’s “deep remorse” and acknowledged that he had ceased Helix operations two years before his arrest.
The judge stated, “He turned himself around before he was arrested in this case.”
In addition to his prison sentence, Harmon was ordered to forfeit approximately $311 million in cash, seized cryptocurrencies, and other assets valued at over $400 million.
Massive Scale of Money Laundering Operations
Harmon ran Helix between 2014 and 2017, laundering more than 350,000 BTC—valued at over $300 million at the time. Helix functioned alongside the Grams darknet search engine, also operated by Harmon, which connected users to darknet markets.
According to prosecutors, Harmon developed an API that allowed darknet markets to integrate Helix into their Bitcoin withdrawal systems. Prosecutor Alden Pelker described Harmon’s actions as “staggering,” remarking, “He brought search engine optimization to local cocaine distributors.”
Harmon was arrested in February 2020 and pleaded guilty in August 2021. His initial defense argued that Bitcoin was not “money” and therefore could not be subject to money laundering charges, but the argument was dismissed in court.
Family Involvement: The Role of Gary Harmon
The case took another twist when Larry Harmon’s younger brother, Gary Harmon, used Larry’s passwords to steal 712 BTC (worth over $5 million at the time) from wallets seized by the Internal Revenue Service.
Gary was arrested in July 2021 and later convicted of wire fraud and obstruction of justice. He was sentenced to four years in prison and ordered to surrender $20 million in cryptocurrency.
