An Ohio man has been sentenced to four years and three months in prison for stealing 712 bitcoins ($21 million). After his brother’s arrest, investigators seized them.
Cleveland’s Gary James Harmon, 31, stole cryptocurrency and, in the case of his brother, Larry Dean Harmon, was the subject of a “pending criminal forfeiture lawsuit,” according to the Department of Justice (DoJ). .
Larry Harmon was arrested in February 2020 for operating a dark web cryptocurrency mixer known as Helix. At the time of the transaction he was worth over $300 million he was used to launder over 350,000 bitcoins and now he is worth $10.3 billion. According to the DoJ, the funds came from customers operating in dark web markets.
For more information on Crypto Mixer, ChipMixer Crypto Laundromat has been shut down by German and US authorities.
During Harmon’s arrest, law enforcement seized a cryptocurrency storage device containing funds generated by Helix. This means it is subject to forfeiture and has been confiscated by the state.
However, investigators were unable to recover any bitcoins stored on the device due to built-in security features.
Using his brother’s login, Gary Harmon recreated and accessed a wallet stored on his device and transferred over 712 bitcoins to his own wallet. Digital currency was worth $4.8 million at the time and is worth many times that amount today.
According to the DoJ, Gary Harmon later laundered those funds through two online Bitcoin mixers before using the digital currency to fund several large purchases.
After his arrest, he agreed to confiscate the stolen cryptocurrency to the state. This includes over 647 Bitcoins, 2 Ethereum, and 17.4 million Dogecoins, making him over $20 million in total.
Larry Harmon pleaded guilty to money laundering conspiracy in August 2021.
Cryptocurrency mixers are an increasingly popular method for criminals to launder criminal proceeds.
The US government is rushing to catch up. In May 2022, Blender.io, one of his most popular mixers used by North Korean threat actors, was sanctioned.
However, there are numerous alternatives that cybercriminals with a clue can use.
