Yeliz Akmaca 
The U.S. Department of Justice has officially seized more than $400 million in cryptocurrencies, cash, and real estate linked to the Helix Bitcoin Mixer. The forfeiture, finalized at the end of January 2026, marks the closure of a years-long legal battle.
Helix Operations and Larry Harmon’s Case
It all began in 2014. Helix offered users a “tumbling” service, claiming to anonymize Bitcoin transactions. However, investigations revealed that the platform had become a hub for laundering funds tied to drug trafficking and hacking, rather than a legitimate privacy tool. Records indicate Helix processed over 354,000 Bitcoin, worth around $300 million at the time.
Larry Dean Harmon, the Ohio-based operator, also created the darknet search engine Grams. Helix provided an API for integration with major darknet markets, enabling operators to earn commissions and fees per transaction. Authorities traced tens of millions of dollars in illicit proceeds flowing through Helix from multiple darknet markets.
Harmon faced charges in 2020 for money laundering conspiracy and operating an unlicensed money transmitting business. In 2021, he pled guilty to conspiracy to commit money laundering. By 2024, he was sentenced to 36 months in prison, three years of supervised release, fines, and asset forfeiture. On January 21, 2026, U.S. District Court Judge Beryl A. Howell issued a final forfeiture order, officially transferring the assets to the government.
A New Era in Crypto Mixer Regulation
The Helix case forms part of broader regulatory scrutiny over crypto mixers and privacy tools. Platforms like Tornado Cash have faced similar enforcement actions. While crypto advocates argue these services offer legitimate privacy protections, authorities remain focused on their potential use in criminal activity.
In a related development, blockchain entrepreneur and Coin Center fellow Michael Lewellen filed a lawsuit challenging the DOJ. He seeks a ruling that his non-custodial crypto crowdfunding platform, Pharos, does not violate money transmission laws. The case highlights concerns that software developers creating non-custodial privacy tools are being unfairly targeted.
Interestingly, the Justice Department has signaled it will slow enforcement against crypto exchanges and developers. This follows the disbanding of the National Cryptocurrency Enforcement Team (NCET), the specialized unit investigating crypto-related criminal activity.
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