The U.S. Department of Justice (DOJ) has finalized the seizure of more than $400 million in cryptocurrencies and related assets tied to the now-defunct darknet cryptocurrency mixer Helix. Before the DOJ’s involvement, Helix worked to combine cryptocurrency from various users and pass it through numerous transactions to obscure its origin , destination, and ownership. Earlier, federal authorities had already seized control of assets belonging to Larry Dean Harmon, who managed Helix as it moved more than $300 million in crypto from 2014 to 2017. In August 2021, Harmon admitted to conspiring to launder money. He was sentenced in November 2024 to 36 months in prison, 3 years of supervised release, and the forfeiture of funds and property. Helix had managed over 350000 BTC for customers Court records show Helix was among the most widely used darknet mixers, especially popular with online drug sellers looking to clean their illegal earnings. The mixer handled close to 354,468 BTC on behalf of users, which at that time was about $300 million. Much of the digital currency was linked to illegal drug platforms on the darknet, and Harmon made money by taking a share of each transaction. Helix and Grams were built to connect with most darknet marketplaces, including the infamous AlphaBay, with Helix’s API making it easy for platforms to route withdrawals through the mixer. Investigators later traced large sums totaling tens of millions of dollars to the service. The Internal Revenue Service Criminal Investigation (IRS-CI) and Homeland Security Investigations (HSI) played a central role in cracking the case. Regarding the Helix asset forfeiture, a federal prosecutor specializing in cybercrime cases said the focus wasn’t solely on punishment but on dismantling the economic networks behind crime. He added, “The inclusion of real estate and traditional financial assets shows investigators are following the money wherever it goes.” The U.S. Treasury had earlier sanctioned Tornado Cash, but later removed the sanctions Earlier, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on Tornado Cash , a platform that has facilitated the movement of billions in virtual currency for illicit purposes. Over $455 million of the laundered total was stolen funds from the Lazarus Group, a North Korean state-backed hacking organization sanctioned by the U.S. The mixer also helped launder more than $96 million from the Harmony Bridge hack on June 24, 2022, and at least $7.8 million from the Nomad hack on August 2, 2022, according to the DOJ records. In 2025, however, the Treasury Department said it had lifted sanctions on Tornado Cash, after the Trump administration examined the unique legal and policy challenges involved. Treasury Secretary Scott Bessent noted, “Digital assets present enormous opportunities for innovation and value creation for the American people. Securing the digital asset industry from abuse by North Korea and other illicit actors is essential to establishing U.S. leadership and ensuring that the American people can benefit from financial innovation and inclusion.” At the time, some crypto executives welcomed the decision, including Coinbase CEO Brian Armstrong. He argued, “No one wants to see bad folks use crypto. But privacy is an important feature for many law-abiding citizens, and you can’t sanction open source code.” Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
