The U.S. government has gained legal ownership of over $400 million in assets tied to Helix, a darknet cryptocurrency mixing service. Previously seized from operator Larry Dean Harmon, these assets include cryptocurrency, real estate, and cash. Helix, which was used to launder illicit funds for darknet drug markets, processed hundreds of millions in transactions before Harmon’s guilty plea in 2021. This final forfeiture marks a significant step in the government's efforts to dismantle darknet financial operations.
Looking Back: Helix Exchange
Helix was a cryptocurrency mixing service that operated from 2014 to 2017, designed to obscure the sources and destinations of transactions, making it an ideal tool for money laundering. Integrated directly into darknet markets via its API, Helix allowed users to seamlessly conceal the origins of illicit funds, with its services even being implemented on the infamous AlphaBay marketplace.
Helix’s popularity among criminals led to significant scrutiny, and in February 2020, its operator, Larry Dean Harmon, was arrested. Harmon pleaded guilty in August 2021 to operating an unlicensed money-transmitting business and violating the Bank Secrecy Act. In November 2024, he was sentenced to three years in prison, with the court also ordering the forfeiture of most his assets.
Finalizing Forfeitures
During Larry Dean Harmon's arrest in February 2020, the U.S. government immediately seized over $400 million in assets tied to Helix, including cryptocurrency, real estate, and financial accounts. While these assets were taken into government custody, the legal ownership wasn’t confirmed until January 21, 2026, when a federal court issued a final forfeiture order.
This court order now officially transfers full legal ownership of the seized assets to the government, marking the conclusion of the forfeiture process. The funds, which had been held by the government for years, are now permanently under its control, marking the conclusion of the forfeiture process and the formal end of the Helix operation.
Conclusion
While the recent court order may seem significant, it is largely a legal formality that finalizes the government’s ownership of the assets seized from Helix. The funds, which have been in government custody for years, are now permanently under its control, allowing authorities to move forward with their plans for those assets. In practical terms, this decision doesn’t change much in terms of the broader field of darknet operations, but it does allow the government to officially retain and manage the seized resources as it sees fit.
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