The US regulator has fined $60 million to Larry Dean Harmon, the major character behind crypto mixer “Helix” and Coin Ninja.
The Financial Crimes Enforcement Network (FinCEN) has put a penalty of $60 million on Helix’s founder and operator for violation of the US Bank Secrecy Act. According to FinCEN’s document, Bitcoin mixer Helix has processed transactions of nearly 356,000 BTC from June 2014 to December 2017. In the same time frame, the total value received or sent through Helix is equal to $311 million. Harmon’s Bitcoin mixer has been used for illegal things such as drugs, child pornography, and guns.
Violation of BSN’s Regulations
Mr.Harmon is also the founder and operator of Coin Ninja which is also working as an unregistered entity. According to FinCEN, Harmon has violated the rules and regulations of BSN and acted as a facilitator in money laundering. He even failed to report illicit activities associated with Helix and Coin Ninja. According to FinCEN:
“Mr. Harmon operated Helix as a bitcoin mixer, or tumbler, and advertised its services in the darkest spaces of the internet as a way for customers to anonymously pay for things like drugs, guns, and child pornography.”
In February, Harmon was also arrested for running and governing unregistered entities dealing with money services. At that time, he was charged for laundering $300 million in top digital Bitcoin.
Mixing services obscure the origin of coin transactions by sending through various wallet addresses. Normally, mixers are employed by hackers to privatize cryptocurrencies to hide the source of transactions. KuCoin’s hacker also sent a significant portion of cryptocurrencies to crypto mixers. And Harmon’s Bitcoin mixer, Helix, was linked with the Dark web.
Harman has willfully violated the BSN’s regulations and the Bank Secrecy Act by engaging in money laundering, FinCEN claims. Owners of the crypto derivatives exchange BitMEX have also been charged for violation of BSN.
According to the latest report, Helix was linked with Grams which is also known as the “Google of the Dark Web.”