Man Pleads Guilty to Stealing Bitcoin ‘Seized’ by US Government

An Ohio antheral has pleaded blameworthy to stealing implicit 712 bitcoin that was “seized” by the U.S. authorities successful different transgression case. He has agreed to forfeit immoderate bitcoin, ether, and dogecoin arsenic portion of his plea. “Due to the summation successful marketplace prices, the full worth of these forfeitable properties exceeds $12 million,” said the U.S. Department of Justice (DOJ).

US Man Steals Brother’s ‘Seized’ Bitcoin

The U.S. Department of Justice (DOJ) announced Friday that a 31-year-old Ohio man, Gary James Harmon, has pleaded blameworthy to “unlawfully stealing” bitcoin that was “seized” by the national authorities successful his brother’s pending transgression case. The DOJ described:

Harmon pleaded blameworthy to ligament fraud and obstruction of justness for unlawfully taking much than 712 bitcoin that had been seized by instrumentality enforcement and was taxable to forfeiture successful the pending transgression prosecution of Larry Harmon.

As portion of his plea, Gary Harmon agreed to forfeit “cryptocurrencies and different properties derived from the fraudulently taken proceeds, including much than 647.41 bitcoin (BTC), 2.14 ethereum (ETH), and 17,404,400.64 dogecoin (DOGE),” the DOJ added. “Due to the summation successful marketplace prices, the full worth of these forfeitable properties exceeds $12 million.”

The Stolen ‘Seized’ Bitcoin

The stolen bitcoin was stored successful a Trezor hardware wallet that was seized by the national authorities successful transportation with Larry Harmon, who was arrested successful February 2020. The instrumentality was stored successful an Internal Revenue Service (IRS) grounds locker. The national authorities had not taken power of the coins owed to the device’s analyzable security, the DOJ explained.

Larry Harmon pleaded blameworthy successful August 2021 to wealth laundering conspiracy successful transportation with “his cognition of Helix, a darknet-based cryptocurrency wealth laundering service, known arsenic a ‘mixer’ oregon ‘tumbler,'” the DOJ detailed, noting:

As Harmon aboriginal admitted, Helix laundered implicit 350,000 bitcoin — valued astatine implicit $300 cardinal astatine the clip of the transactions — connected behalf of customers, with the largest measurement coming from darknet markets.

As portion of his arrest, instrumentality enforcement seized assorted assets, including a hardware wallet containing the amerciable proceeds generated done his Helix operation.

However, portion the authorities was inactive trying to summation entree to the seized bitcoin, Gary Harmon utilized his brother’s credentials to transportation much than 712 BTC, valued astatine astir $4.8 cardinal astatine the time, from his brother’s seized instrumentality to his ain bitcoin wallets successful April 2020. He past laundered the proceeds done 2 online mixers earlier utilizing them to concern his ain expenditures, the DOJ described.

The Justice Department noted that regarding the Gary Harmon case:

The ligament fraud complaint carries a statutory maximum condemnation of up to 20 years successful prison; the obstruction of justness complaint carries a statutory maximum condemnation of 20 years successful prison.

What bash you deliberation astir Gary Harmon stealing bitcoin that was seized by the national government? Let america cognize successful the comments conception below.

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