The CEO of crypto wallet provider DropBit, Larry Dean Harmon, has been officially indicted for laundering $311 million in bitcoin for darknet transactions. According to the Cleveland report, Federal authorities arrested Harmon for conspiracy to launder money, operating an unlicensed money transmitter business.
Dean Harmon is accused of selling illicit drugs via the darknet.
DropBit CEO Larry Dean Harmon is also accused of selling illicit substances via darknet marketplace AlphaBay. The darknet market place was shut down by the authorities in 2017. AlphaBay was a major source of Fentanyl and Heroin in the United States. It is alleged that during 2014-2017, Harmon laundered over 354,468 bitcoins worth $311 million at the time.
Prosecutors are seeking millions of dollars in penalties.
The Federal prosecutors are seeking millions of dollars in disgorgement and want Harmon to forfeit his property. Several from the crypto community think that the US department of justice is going too far in this case. Jake Chervinsky, general counsel at Compound, described the case as “tough” on Twitter. Crypto podcast host Peter McCormack also tweeted, saying that Harmon has been denied bond as he is considered a flight risk even though all his assets have been confiscated.
1/ Re: Dropbit…
…CEO Larry Harmon has been arrested and is currently in Youngstown Ohio federal jail.
– Conspiracy to launder money instruments
– Operating an unlicensed money transmitting business
He faces up to 30 years.
— Peter McCormack (@PeterMcCormack) February 13, 2020