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The U.S. government confiscates $400 million in Helix that is purportedly derived from transactions associated with drugs.
The Department of Justice announced it now possesses legal ownership of cryptocurrency, real estate, and monetary assets associated with the darknet mixing service, Helix
The U.S. government has confiscated millions in cryptocurrency and other assets from Helix. (Kaur Kristjan on Unsplash/Modified by CoinDesk)
Key points:
- The U.S. government has claimed legal ownership of over $400 million in confiscated cryptocurrency, real estate, and cash associated with the darknet bitcoin mixing service Helix.
- Prosecutors assert that Helix, which facilitated the processing of at least 354,468 bitcoin primarily linked to darknet drug markets, was extensively utilized by online drug dealers and other criminals for laundering illegal gains.
- Helix’s operator, Larry Dean Harmon, admitted guilt to conspiracy to commit money laundering and was sentenced in November 2024 to 36 months of incarceration, three years of supervised release, and substantial forfeitures, as part of a larger DOJ crackdown on cybercrime.
The U.S. government now possesses legal title to assets exceeding $400 million in cryptocurrency, real estate, and cash tied to the formerly prominent darknet bitcoin mixing service Helix, as announced by the Department of Justice (DOJ) on Thursday. Mixing services like Helix are intended to obscure the origins and destinations of cryptocurrency transactions by pooling and redistributing funds, a method that has long drawn the scrutiny of law enforcement and regulators. The DOJ has claimed that Helix was specifically leveraged by drug traffickers and other criminals for money laundering activities.
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As per court filings, Helix ranked among the most frequently used mixing services on the darknet, especially by online drug dealers aiming to conceal illicit earnings. Investigators indicated that Helix processed at least 354,468 bitcoin, valued at around $300 million at the time, much of which was tied to darknet drug markets. The operator of Helix, Larry Dean Harmon, earned commissions and fees from these transactions.
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Harmon admitted guilt in August 2021 to conspiracy to commit money laundering and was sentenced in November 2024 to 36 months in prison, followed by three years of supervised release, along with a forfeiture money judgment and the forfeiture of confiscated assets.
Harmon also managed Grams, a darknet search engine created to link users with major darknet markets. Helix’s application programming interface (API) enabled darknet marketplaces to incorporate the mixer directly into their bitcoin withdrawal systems, allowing for seamless transactions.
Since 2020, the DOJ Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) has achieved over 180 convictions for cybercrime and court orders for the recovery of more than $350 million in funds belonging to victims, according to the Justice Department.
