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- DOJ has finalized seizure of more than $400M tied to Helix crypto mixer.
- Helix processed over 354,000 BTC for laundering between 2014 and 2017.
- Mixer prosecutions are fueling debate over privacy tools and developer liability.
The U.S. Department of Justice (DOJ) has completed one of the largest crypto-related forfeiture actions to date, finalizing the seizure of more than $400 million in assets linked to Helix, a darknet cryptocurrency mixing service used to launder proceeds from online criminal marketplaces.
The final court order, issued last week and announced Thursday, grants the federal government full legal ownership of cryptocurrencies, real estate holdings, and financial accounts connected to Helix’s operations. Prosecutors say the case marks a significant milestone in dismantling long-running crypto-based laundering infrastructure.
DOJ Secures Legal Title to Helix-Linked Assets
According to the Justice Department, Helix processed at least 354,468 bitcoin between 2014 and 2017 for users seeking to conceal the origins of funds tied to illegal activity. At the time, those transactions were valued at roughly $300 million. With bitcoin prices substantially higher today, the total forfeited asset value now exceeds $400 million.
Helix functioned as a centralized crypto mixer, pooling customer funds and redistributing them in ways designed to obscure transaction trails. Prosecutors say the service was heavily used by vendors and customers of darknet marketplaces, making it a core financial hub for illicit online trade.
The forfeiture includes seized digital assets, properties purchased with laundered proceeds, and related financial accounts.
Operator Sentenced After Guilty Plea
Helix was operated by Larry Dean Harmon, who pleaded guilty in August 2021 to conspiracy to commit money laundering. In November 2024, Harmon was sentenced to three years in federal prison followed by a term of supervised release.
Authorities have previously described Harmon as knowingly operating Helix as a laundering service rather than a neutral privacy tool. Court filings indicate he promoted Helix to darknet users and understood the criminal nature of much of its traffic.
The finalized forfeiture closes the government’s long-running effort to seize and formalize ownership of assets tied to Harmon’s operation.
Crypto Mixers Under Growing Political Scrutiny
The Helix case unfolds amid broader debate over how crypto mixers and privacy tools should be regulated.
In December, President Donald Trump said he was reviewing a potential pardon for Keonne Rodriguez, co-founder of Samourai Wallet, who was convicted on money laundering and unlicensed money transmission charges and sentenced to five years in prison.
Separately, Tornado Cash developer Roman Storm was convicted last year on money laundering and sanctions-related offenses and now faces a possible sentence of up to five years. Ethereum co-founder Vitalik Buterin has publicly supported Storm, arguing that privacy software should not be criminalized solely based on how others use it.
Also Read: DOJ Drops OpenSea Insider Trading Case as Binance Moves Toward MiCA Compliance
In a recent letter, Buterin said tools like Tornado Cash provide essential protection against mass data exploitation and warned that overly broad prosecutions could chill open-source development.
With the Helix forfeiture now finalized, the DOJ has delivered a clear message about its willingness to pursue large-scale seizures tied to crypto-enabled laundering. At the same time, ongoing cases involving wallet developers and privacy tools highlight unresolved questions about where criminal liability should end and software freedom should begin. How regulators strike that balance may shape the future of crypto privacy for years to come.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
