US Government Seizes $400M in Assets Linked to Helix Crypto Mixer

The US Department of Justice (DOJ) has announced a move to seize more than $400 million in assets confiscated from Helix, a cryptocurrency mixing service on the darknet.

Helix was one of the top bitcoin mixers on the dark web in the past. It was run by Larry Dean Harmon. Over the period from 2014 to 2017, it processed approximately 354,468 bitcoins (which were worth more than $300 million at the time), mostly for darknet drug marketplaces.

Investigation

The inquiry conducted by the IRS Criminal Investigation Cyber Crimes Unit and the FBI unearthed that Harmon had been the one to disguise the origins of the illicit funds. In 2021, Harmon entered a guilty plea to conspiracy to commit money laundering and was sentenced to 36 months’ imprisonment.

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Implications for Crypto Regulation

The Helix case is a good example of the difficulties in regulating privacy-focused crypto tools. A mixer can be enabled for a good outcome, but more often it is a channel for financing crime.

The DOJ lawsuit against Helix demonstrates that the only way to catch the criminals and seize their crypto holdings is for law enforcement authorities to work together internationally and utilise the right blockchain analysis tools.

Overall, the Helix instance can be viewed as a milestone in the ongoing battle against crypto mixers as well as a warning to the whole market that firms should implement stringent anti-money laundering regulations.

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