The US Department of Justice (DOJ) is suing Larry Dean Harmon, founder of crypto-mixer Helix, for failing to pay a $60 million civil fine since he was indicted in 2020.
The lawsuit was Foot in the US District Court for the District of Columbia on Wednesday. According to the filing, Harmon was fined $60 million after he pleaded guilty to the charges in 2020.
Helix laundered over $300 million
In December 2019, the Financial Crimes Enforcement Network (FinCEN), an office of the US Treasury Department, Accused The creator of the coil for violating the Federal Bank Secrecy Act (BSA). The agency accused the developer of conspiring to launder cash instruments and operating an unlicensed money transfer business through his company. Encoder mixer.
Prior to the filing of the indictment, he ran Harmon Helix as a cryptocurrency alternative from June 2014 through December 2017. During its years of activity, Helix has processed more than $311 million in more than 1.2 million transactions.
In July 2017, Harmon became CEO of Coin Ninja, a crypto exchange that also provided mixing services. The company also introduced DropBit, a service that allows users to send and receive bitcoins through text messages and Twitter handles without going through know-your-customer (KYC) procedures.
FinCEN notes that Coin Ninja, DropBit, and Helix were not registered as financial services firms while they were in operation.
The Ministry of Justice seeks benefits and costs
But since then, Harmon has not paid the penalty fee, hence the latest lawsuit filed by the Department of Justice. The filing asked the court to order Harmon to pay the fine plus interest and costs.
“The United States respectfully requests that the Court commute the civil penalty assessed by FinCEN v. Harmon for judgment to grant the United States a monetary judgment in an amount to be determined by the Court, plus interest as provided by law, and to grant such other relief as the Court deems fair and appropriate.”
Meanwhile, the court has postponed the sentencing for Harmon, and is awaiting cooperation with the US government.