Larry Harmon aka Helix Plea Agreement
It’s almost like someone said - Larry you are so screwed, thanks for making new legal precedence & you should probably negotiate a plea agreement. To my haters & Trolls - EAT IT you were wrong AGAIN
I tumbled for you now I’m screwed…
In my time on Twitter there were certain cases that I followed because when you are researching and you see a criminal case that is a case of first impression, well you tend to make a mental note
Lets also not forget the October 2020 FINCEN Announcement (yes I did a Twitter thread on that but unfortunately it wasn’t archived);
The Financial Crimes Enforcement Network (FinCEN) has assessed a $60 million civil money penalty against Larry Dean Harmon, the founder, administrator, and primary operator of Helix and Coin Ninja, convertible virtual currency “mixers,” or “tumblers,” for violations of the Bank Secrecy Act (BSA) and its implementing regulations.
Mr. Harmon operated Helix as an unregistered money services business (MSB) from 2014 to 2017 and Coin Ninja from 2017 to 2020. Mr. Harmon is currently being prosecuted in the U.S. District Court for the District of Columbia on charges of conspiracy to launder monetary instruments and the operation of an unlicensed money transmitting business in connection with his operation of Helix.
Original Indictment via DOJ-OPA https://www.justice.gov/opa/press-release/file/1249026/download
See Ohio Resident Pleads Guilty to Operating Darknet-Based Bitcoin ‘Mixer’ That Laundered Over $300 Million -see August 18, 2021 DOJ-OPA
Remember that time I did a thread and I may have used all caps about the DDC Ruling which was in fact a case of first impression and my timeline was immediately swarmed? Yup those were super fun times being harassed and trolled saying I was wrong and that Harmon wouldn’t take a plea.
But before we do the prerequisite deep dive court filings - here’s your obligatory multimedia presentations USA v Harmon
HERE. WE. ARE.
Exactly where someone predicted we’d be —Although if my recollection is correct I guesstimated that Harmon would take a plea in the late Winter or Early Spring of 2021- nonetheless it is still weird how those predictions actually come true. It’s not weird it simply means I was reading the docket and briefs correctly. It’s a pity I’m not on Twitter because I’d probably be name checking a few Blue-QANONs for harassing me and telling me I was wrong
Harmon admitted that Helix (a Bitcoin tumbler) partnered with numerous Darknet markets
AlphaBay, Evolution, Cloud 9 and others,
to provide bitcoin money laundering services for market customers.
Helix moved over 350,000 bitcoin – which was valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from Darknet markets.
Harmon further admitted that he conspired with Darknet vendors and marketplace administrators to launder such bitcoins generated through illegal drug trafficking offenses on those Darknet marketplaces.
Even if Harmon completes the terms and conditions of his plea agreement he is still looking at serious time in prison - with a 2 level reduction for “accepting full responsibility” that leaves Harmon to “at least a level 43 3
based on the terms and conditions set-forth in the executed plea agreement -Defendant Harmon is essentially the property of the US Government until they say he’s not…
now that’s very interesting - Defendant Harmon has holdings in Airfill Hodlings AB, a company —because if the preliminary research is correct (which I have zero reason to believe it isn’t) then Larry’s brother Gary is in it up to his DropBit eyeballs.
Meaning there was this false impression that Larry was a software programming god —but I think we are now seeing (in the plea agreement) that Larry’s brother, Gary might also be in the Prosectors crosshairs… think Cane and Abel of biblical proportions. Meaning in this analogy Cane is Larry and Abel is Gary -and Cane/Larry signed a plea agreement & he’s required to cooperate with the Government… side note I can’t believe that Coin Ninja and DropBit are still relatively functional. That seems like the Government setting up a homey trap but meh -whadda I know.
Larry’s brother, Gary, and other software developers purportedly personally funded and oversaw daily operations of DropBit - which (previously) allowed its users to send BTC on-chain and via the Lightning Network. With using only a Twitter handle or phone numbers. Circumventing BSA & KYC laws… oh FFS this is just really bad marketing that my ear drums started ringing…I’m sorry now that I’ve watched it - that means you have to as well. Coin Ninja’s YouTube Channel has nearly 100 videos
the DropBit 4 API is still available on Google Play but on page 11 it finally answers a long held question I had because at the time I was tracing wallets and I was vexed by the stop in Sweden. Notwithstanding as the plea agreement notes Harmon has a vested business interest and per the T’s & C’s of the Plea Agreement he has 6 months to liquidate his holdings.
STATEMENT OF OFFENSE by USA as to LARRY DEAN HARMON -see DDC-ECF
Harmon used various business (of which he controlled) for Example Helix and Coin Ninja - he then unlawfully operated as an exchange, offering services of convertible virtual currencies. Helix also accepting and transmitting bitcoin. But it was the tumbling that ultimately did him in. Because Harmon’s braggadocios advertisement on various dark web sites, he specifically touted how Helix and later the API (he created) could effectively evade law enforcement…
According to the USAM a prosecutor must prove;
either by direct or circumstantial evidence, that the defendant knew that the property involved was the proceeds of any felony under State, Federal or foreign law.
The prosecutor need not show that the defendant knew the specific crime from which the proceeds were derived; the prosecutor must prove only that the defendant knew that the property was illegally derived in some way
Moreover since the indictment stated that the Governo ent used an undercover agent - see Section 1956(a)(3) relates to undercover operations where the financial transaction involves property represented to be proceeds of specified unlawful activity. “The proceeds in § 1956(a)(3) cases are not actually derived from a real crime; they are undercover funds supplied by the Government”
June 2014 through December 2017, Helix conducted over 1,225,000 transactions for its customers and was associated with virtual currency wallet addresses that sent or received over $311 million dollars. FinCEN’s investigation has identified at least 356,000 bitcoin transactions through Helix.
Mr. Harmon operated Helix as a bitcoin mixer, or tumbler, and advertised its services in the darkest spaces of the internet as a way for customers to anonymously pay for things like drugs, guns, and child pornography. Mr. Harmon subsequently founded, and acted as Chief Executive Officer of, Coin Ninja, which operated as an unregistered MSB and in the same manner as Helix.
And to be fair I’ve been exceptionally critical of the “acting” US Attorney for DC but even I can say - Well Done - you see even I can be quasi-reasonable and I can engage in compartmentalization versus espousing an ubiquitous position of the “acting” US Attorney DC is bad - he’s not. I just have considerable concerns as it relates to the many Jan6th criminal cases. Lastly as part of Larry Dean Harmon’s plea agreement:
Harmon also agreed to the forfeiture;
more than 4,400 bitcoin, valued at more than $200 million at today’s prices, and
other seized properties that were involved in the money laundering conspiracy.
Harmon will be sentenced at a date to be determined and faces a maximum penalty of 20 years in prison, a fine of $500,000 or twice the value of the property involved in the transaction, a term of supervised release of not more than three years, and mandatory restitution.
Chief Judge Beryl Howell of the U.S. District Court for the District of Columbia accepted Harmon’s guilty plea and will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors…
And like I said it’s probably a very good idea that I’m not on Twitter because I’d likely drop a lot of Blue-Qanon account names that said I was wrong- DERP nope it appears that you were the ones who were wrong and
👇🏻this is for mah haters👇🏻
Okie Dokie - I have an insanely busy day of making people cry and my red pen is ready to go -so I won’t be online much today because someone has to shove bonbons in their calorie hole. -Filey
PS - when I said I can’t find my old Twitter threads - back in the summer of 2020 I created a thread and I may have used all caps because that was meant to convey the importance of this July 2020 Ruling and sometimes I can actually find old remnants of my old Twitter research but sadly that July 2020 thread wasn’t archived
Here’s why that July 2020 Ruling was incredibly important
Chief Judge Beryl A. Howell stated that money is "commonly means a medium of exchange, method of payment, or store of value.” Harmon argued that Bitcoin wasn’t currency or money therefore he wasn’t obligated to register pursuing to the BSA
"Bitcoin is these things," Chief Judge Howell
The fact that Chief Judge Howell actually defined “bitcoin as money” that was the primary justification for the court's decision to deny Defendant Harmon’s motion ti dismiss criminal charges against
Larry Harmon, was the sole operator of an unlicensed bitcoin trading platform, known as Helix or Grams-Helix, of which hundreds of millions of dollars were laundered which clearly violated federal and DC law.
At any rate I think you have the important Court Documents and that should help inform you - to make a well informed Opinion…but I genuinely want to go on Twitter and tweet in all caps “Suck It Haters -you were wrong” but I know that’s completely juvenile and not exactly productive…so instead I’ll act like a professional and refrain in engaging in such sophomoric behavior <snort >
See the Feb 13, 2020 DOJ-OPA Press Release which proffered details of the indictment and Defendant https://www.justice.gov/opa/press-release/file/1249026/download
Here I saved you $1.70 and uploaded his plea agreement to Scribd
See the March 2018 Medium Article that Coin Ninja published concerning DropBit
https://medium.com/coinninja/introducing-dropbit-coin-ninjas-new-mobile-bitcoin-wallet-b1f71216eb34 - in the newly filed 2021 Statement of Facts, help you understand hiw
And because today I’m trying not to be a document hoarding Asshole -I saved you a whopping $0.70 because I care - and sharing is caring
Oh you thought I wouldn’t pull down all the documents concerning today’s hearing —silly rabbits of course I did and thereby saving you another $0.70 who boy don’t spend it all in one place