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Helix mixer operator gets 3 years in prison for money laundering

Larry Harmon laundered 350,000 BTC, but he was treated leniently for his help in jailing Roman Sterlingov.

Larry Harmon, who was arrested in 2020 for helping criminals launder money through the Helix cryptocurrency mixer, has been sentenced to three years in prison. The sentence was a show of leniency due to his assistance in the Bitcoin Fog mixer case, District of Columbia District Court Judge Beryl Howell said.

Harmon faced a sentence of up to 20 years for the charges against him. The government had recommended a sentence of 75 months on Nov. 11. Harmon was fined $60 million by the Treasury Department’s Financial Crimes Enforcement Network in 2020.

Harmon helped prosecutors in the case against Bitcoin Fog operator Roman Sterlingov, who was sentenced to 12.5 years in prison on Nov. 8. Harmon expressed remorse at his sentencing. He had also shut down Helix two years before his arrest, the judge noted while passing sentence on him. “He turned himself around before he was arrested in this case,” she said.

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Five Compliance Challenges That Your Algo Execution Model May Be Creating

DOJ Strikes Bitcoin Fog: The End of Darknet’s Most Elusive BTC Service

DOJ Strikes Bitcoin Fog: The End of Darknet’s Most Elusive BTC ServiceA landmark sentencing has closed the chapter on Bitcoin Fog, the longest-running bitcoin mixing service on the darknet, with its operator facing over a decade in prison. The Fall of Bitcoin Fog: DOJ’s Pursuit Unmasks a Decade-Long Darknet Operation The U.S. Department of Justice (DOJ) announced Friday that Roman Sterlingov has been sentenced to prison […]

Five Compliance Challenges That Your Algo Execution Model May Be Creating

Prosecutors Recommend 18-Month Prison Term for Heather Morgan in Bitfinex Hack Case

Prosecutors Recommend 18-Month Prison Term for Heather Morgan in Bitfinex Hack CaseHeather Morgan, known by her rap persona “Razzlekhan,” could land an 18-month prison sentence after pleading guilty to laundering cryptocurrency linked to the 2016 Bitfinex hack. Prosecutors described her role as pivotal in obscuring stolen bitcoin through complex schemes, despite not being part of the original theft. Her cooperation, and the influence of her husband, […]

Five Compliance Challenges That Your Algo Execution Model May Be Creating

US Sentences Nigerian Darknet Fraud Leader to Five Years in Prison for $6M Scheme

US Sentences Nigerian Darknet Fraud Leader to Five Years in Prison for M SchemeA Nigerian national has been sentenced to five years in federal prison for his role in a massive darknet fraud scheme that intended to cause over $6 million in losses, according to the U.S. Department of Justice (DOJ). Using various online aliases, Kaura led a global network selling stolen payment card data, using cryptocurrencies like […]

Five Compliance Challenges That Your Algo Execution Model May Be Creating

German Authorities Shut Down 47 Crypto Exchange Services in Cybercrime Crackdown

German Authorities Shut Down 47 Crypto Exchange Services in Cybercrime CrackdownGerman authorities have dismantled 47 exchange services involved in facilitating anonymous crypto transactions for criminal activities. These platforms bypassed anti-money laundering protocols, enabling cybercriminals to exchange digital currencies without identity verification. The takedown follows a series of other operations targeting major cybercrime networks. With seized user and transaction data, authorities are set to pursue further […]

Five Compliance Challenges That Your Algo Execution Model May Be Creating

Irish Authorities Seize $7.1M in Cryptocurrency Amid Darknet Money Laundering Bust

Irish Authorities Seize .1M in Cryptocurrency Amid Darknet Money Laundering BustIrish authorities seized $7.1 million in cryptocurrency in a raid targeting money laundering and darknet sales. Three individuals were arrested, with one remaining in custody. “The arrests of the three individuals and the assets seized are the result of a highly complex investigation into criminal darknet marketplace activities by specialist investigators attached to the Garda […]

Five Compliance Challenges That Your Algo Execution Model May Be Creating

DOJ Captures Alleged ‘Architect’ of Darknet Marketplace Incognito

DOJ Captures Alleged ‘Architect’ of Darknet Marketplace IncognitoAccording to the U.S. Department of Justice (DOJ), the operator of the darknet marketplace Incognito was apprehended at John F. Kennedy Airport on May 18. Law enforcement officials claim Rui-Siang Lin allegedly constructed the DNM and facilitated the sale of over $100 million worth of illegal drugs through the platform. Federal Authorities Nab Alleged Darknet […]

Five Compliance Challenges That Your Algo Execution Model May Be Creating

Bitzlato ex-CEO Legkodymov pleads guilty to one count in Brooklyn court

The Hong Kong-based crypto exchange had no KYC and was a major support for the darknet marketplace Hydra.

Anatoly Legkodymov, co-founder and former CEO of cryptocurrency exchange Bitzlato, pleaded guilty to one count of operating an unlicensed money services business on Dec. 6. Legkodymov appeared in New York Eastern District Court in Brooklyn before Judge Eric Vitaliano. 

In court, Legkodymov agreed to dissolve Bitzlato and forfeit $23 million in cryptocurrency. He had filed a criminal cause for pleading, which is understood to indicate the intention of entering a guilty plea. Breon Peace, United States Attorney for the Eastern District of New York, said:

Legkodymov was arrested in Miami on Jan. 17 during a coordinated international effort to take the exchange down. Its website was blocked by France the same day. According to the Department of Justice, Spain, Portugal and Cyprus, along with the European Union Agency for Law Enforcement Cooperation (Europol), also took part in the operation against it.

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Five Compliance Challenges That Your Algo Execution Model May Be Creating

$144,000,000 Worth of Bitcoin Linked to Defunct Darknet Marketplace Suddenly Moves to Crypto Mixer: On-Chain Data

4,000,000 Worth of Bitcoin Linked to Defunct Darknet Marketplace Suddenly Moves to Crypto Mixer: On-Chain Data

On-chain data reveals that hundreds of millions of dollars worth of Bitcoin (BTC) linked to a discontinued dark web marketplace has abruptly been moved to a crypto mixer. According to blockchain detective ZachXBT, an entity has moved about 4800 BTC, worth $144 million, originating from the defunct Abaraxas darknet marketplace to a Bitcoin mixer. “An […]

The post $144,000,000 Worth of Bitcoin Linked to Defunct Darknet Marketplace Suddenly Moves to Crypto Mixer: On-Chain Data appeared first on The Daily Hodl.

Five Compliance Challenges That Your Algo Execution Model May Be Creating

Global Law Enforcement Agencies Dismantle Darknet Marketplace Monopoly Market, Arrest 288 and Seize $53.4 Million

Global Law Enforcement Agencies Dismantle Darknet Marketplace Monopoly Market, Arrest 288 and Seize .4 MillionOn May 2, 2023, Europol announced a collaborative effort between law enforcement agencies from the U.S., Europe, the U.K., and Brazil culminated in 288 arrests, along with the confiscation of 850 kg of illegal drugs, 117 firearms, and $53.4 million in cash and cryptocurrencies. This joint venture, named “Operation Spector,” successfully dismantled the darknet marketplace […]

Five Compliance Challenges That Your Algo Execution Model May Be Creating