US Department of Justice files $60 million lawsuit against Bitcoin Mixer operator – Regulation Bitcoin News
The US Department of Justice recently filed a lawsuit to recover $60 million levied on Larry Harmon, the operator of a bitcoin mixing service targeted by US law enforcement in 2020. According to US authorities, Harmon had been running an unlicensed money transfer business.
Breach of the Bank Secrecy Act
The US Department of Justice (DOJ) is reportedly suing Larry Harmon, the founder of crypto mixer Helix, to recover the $60 million fine imposed on him by regulators. According to a Reuters report, the fine, which was imposed in 2020, stems from Harmon’s alleged violations of the US federal Bank Secrecy Act.
According to the Financial Crimes Enforcement Network (FinCEN), Harmon operated an unlicensed money transmission business. The business, according to US regulators, enabled users to send virtual currencies anonymously. In 2021, Harmon pleaded guilty to a money laundering conspiracy charge and said he would cooperate with federal authorities.
According to the Helix founder’s severance petition filed in U.S. District Court in 2021, Harmon claimed he “never set out to break the law.” He insisted that if he had known in 2014 – when he started Helix’s operations – that “using a bitcoin tumbler was illegal, he would never have done it.”
Furthermore, the Helix mixer used a “double-blind” system, meaning that Harmon had no idea how much BTC was sent through the mixing platform. According to the report, neither Harmon’s attorney nor the representative for FinCEN had responded to media inquiries regarding the DOJ’s decision to sue.
As for the criminal case against Harmon, the report said the Helix founder had agreed to pay $311,000 in restitution. The report added that Harmon’s sentencing was postponed pending his cooperation with the US government.
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