An Ohio man has been arrested by federal authorities for running a “Bitcoin mixer” service on the dark web that helped to launder as much as $300 million in Bitcoin. The bitcoin allegedly laundered by the service are now worth $3.5 billion at the current valuation.
ZDNet reports that Larry Harmon, 36, of Akron, Ohio, has been accused of operating a website on the dark web called “Helix” which acted as a “Bitcoin mixer” service, disguising the origin of users’ Bitcoin transactions to make them untraceable. Because the Bitcoin blockchain is a public database, transactions on it can often be linked back to the buyer’s credit card, bank account, or PayPal, Helix sought to prevent that.
Helix acted as a service that would take funds from a user, split it into smaller amounts and then reassemble the funds at a new Bitcoin address via thousands of small transactions. This is done in an attempt