The U.S. Department of Justice (DOJ) has officially seized over $400 million in cryptocurrencies, real estate, and cash linked to the Helix Bitcoin Mixer.

The forfeiture was finalized in late January 2026, concluding years of litigation against Helix’s operator, Larry Dean Harmon.

Helix’s Illegal Activity and Harmon’s Case

Helix, which operated from 2014 to 2017, was marketed as a tumbling service designed to anonymize Bitcoin transactions. Investigators found that it had become a significant hub for laundering funds tied to drug trafficking, hacking, and other criminal activities. Court filings show that Helix processed more than 354,468 Bitcoin, valued at approximately $300 million at that time, for its users.

Harmon, who also created the darknet search engine Grams, developed the platform to link directly with major darknet markets. Its Application Programming Interface (API) allowed them to connect the service to their Bitcoin withdrawal systems, earning them a commission on every transaction.

The Ohio-based operator of Helix was first charged in 2020 with money laundering conspiracy and operating an unlicensed money transmitting business. In August 2021, he pleaded guilty and was sentenced in November 2024 to 36 months in prison.

On January 21, 2026, Judge Beryl A. Howell issued a final forfeiture order, officially transferring the assets to the government.

Regulators Ease Crackdown on Crypto Mixers

The Helix case is part of a broader regulatory crackdown on cryptocurrency mixers and privacy tools. Authorities maintain that such services could facilitate criminal activities, despite crypto advocates claiming they provide essential privacy protections.

In a related development, blockchain entrepreneur and Coin Center fellow Michael Lewellen filed a lawsuit challenging the DOJ over the regulation of non-custodial crypto crowdfunding platforms, arguing they are unduly targeted.

The Justice Department later announced it would no longer pursue criminal cases against crypto exchanges, developers, or users for regulatory violations following the disbanding of the National Cryptocurrency Enforcement Team.