Report: US Department of Justice Files $60 Million Lawsuit Against Bitcoin Mixer Operator – Regulation Bitcoin News


The United States Department of Justice recently filed a lawsuit to recover $60 million that was imposed on Larry Harmon, the operator of a bitcoin mixing service targeted by US law enforcement in 2020. According to US authorities, Harmon had operated an unlicensed money-transmitting business .

Violation of the Bank Secrecy Act

The United States Department of Justice (DOJ) is reportedly suing Larry Harmon, the founder of the crypto mixer Helix, to recover the $60 million fine imposed on him by regulators. According to a Reuters reportthe fine, which was imposed in 2020stems from Harmon’s alleged violation of the United States federal Bank Secrecy Act.

According to the Financial Crimes Enforcement Network (FinCEN), Harmon operated an unlicensed money-transmitting business. The business, according to US regulators, enabled users to send virtual currencies anonymously. In 2021, Harmon reportedly pleaded guilty to a money laundering conspiracy charge and said he would cooperate with federal authorities.

However, according to the Helix founder’s motion to dismiss filed with the US District Court in 2021, Harmon claimed he had “never set out to break the law.” He insisted if he had known in 2014 — when he started Helix’s operations — that “operating a bitcoin tumbler was illegal, he never would have done it.”

Furthermore, the Helix mixer employed a “double-blind system,” which means Harmon had no idea how much BTC was sent through the mixing platform. As per the report, neither Harmon’s lawyer nor the representative of FinCEN had responded to media inquiries concerning the DOJ’s decision to sue.

Concerning the criminal case against Harmon, the report said the Helix founder had agreed to pay $311,000 as restoration. The report added that Harmon’s sentencing had been deferred pending his cooperation with the US government.

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.














Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

Leave a Comment