Crypto: Doj Finalizes $400m Crypto Forfeiture In Helix Bitcoin Mixer Case

A final court order transfers the legal title of seized cryptocurrency and assets to the US government, closing a case tied to Helix’s operations from 2014 to 2017.

The United States Department of Justice (DOJ) finalized the forfeiture of over $400 million in cryptocurrency and other assets tied to Helix, an early Bitcoin-era darknet mixing service, according to a statement released Thursday.

The assets were seized from Larry Harmon, the operator of Helix, which processed transactions between 2014 and 2017. The crypto mixer was designed to obscure the source and destination of Bitcoin (BTC) that was linked to darknet markets.

The forfeiture follows a Jan. 21 order by the US District Court for the District of Columbia, formally transferring ownership of the assets to the government. The final court order gives the government legal title to the seized digital assets, real estate and financial assets connected to Helix’s operations.

The development marks the legal endpoint of one of the most significant early Bitcoin mixer prosecutions to move through US courts. The case illustrates how major crypto-related enforcement actions can take years to fully resolve, even after criminal conduct has ended.

According to the DOJ, Helix processed at least 354,468 Bitcoin during its operation, worth about $300 million at the time of the transactions. Prosecutors linked the activity to darknet drug markets seeking to launder their illegal proceeds.

Harmon also operated Grams, a search engine designed to support major darknet markets active at the time.

Investigators said Helix's application programming interface allowed marketplaces to integrate the mixer directly into their Bitcoin withdrawal systems, enabling large-scale laundering activity.

The DOJ said investigators traced tens of millions from darknet markets to Helix.

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Source: CoinTelegraph