{"id":16251,"date":"2023-01-09T04:33:10","date_gmt":"2023-01-09T04:33:10","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/man-pleads-guilty-to-stealing-bitcoin-seized-by-us-government-featured-bitcoin-news\/"},"modified":"2023-01-09T04:33:10","modified_gmt":"2023-01-09T04:33:10","slug":"man-pleads-guilty-to-stealing-bitcoin-seized-by-us-government-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/man-pleads-guilty-to-stealing-bitcoin-seized-by-us-government-featured-bitcoin-news\/","title":{"rendered":"Man Pleads Guilty to Stealing Bitcoin ‘Seized’ by US Government \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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An Ohio man has pleaded guilty to stealing over 712 bitcoin that was \u201cseized\u201d by the U.S. government in another criminal case. He has agreed to forfeit some bitcoin, ether, and dogecoin as part of his plea. \u201cDue to the increase in market prices, the total value of these forfeitable properties exceeds $12 million,\u201d said the U.S. Department of Justice (DOJ).<\/strong><\/p>\n

US Man Steals Brother\u2019s \u2018Seized\u2019 Bitcoin<\/h2>\n

The U.S. Department of Justice (DOJ) announced Friday that a 31-year-old Ohio man, Gary James Harmon, has pleaded guilty to \u201cunlawfully stealing\u201d bitcoin that was \u201cseized\u201d by the federal government in his brother\u2019s pending criminal case. The DOJ described:<\/p>\n

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Harmon pleaded guilty to wire fraud and obstruction of justice for unlawfully taking more than 712 bitcoin that had been seized by law enforcement and was subject to forfeiture in the pending criminal prosecution of Larry Harmon.<\/p>\n<\/blockquote>\n

As part of his plea, Gary Harmon agreed to forfeit \u201ccryptocurrencies and other properties derived from the fraudulently taken proceeds, including more than 647.41 bitcoin (BTC<\/a>), 2.14 ethereum (ETH<\/a>), and 17,404,400.64 dogecoin (DOGE),\u201d the DOJ added. \u201cDue to the increase in market prices, the total value of these forfeitable properties exceeds $12 million.\u201d<\/p>\n

The Stolen \u2018Seized\u2019 Bitcoin<\/h2>\n

The stolen bitcoin was stored in a Trezor hardware wallet that was seized by the federal government in connection with Larry Harmon, who was arrested in February 2020. The device was stored in an Internal Revenue Service (IRS) evidence locker. The federal authorities had not taken control of the coins due to the device\u2019s complex security, the DOJ explained.<\/p>\n

Larry Harmon pleaded guilty in August 2021 to money laundering conspiracy in connection with \u201chis operation of Helix, a darknet-based cryptocurrency money laundering service, known as a \u2018mixer\u2019 or \u2018tumbler,’\u201d the DOJ detailed, noting:<\/p>\n

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As Harmon later admitted, Helix laundered over 350,000 bitcoin \u2014 valued at over $300 million at the time of the transactions \u2014 on behalf of customers, with the largest volume coming from darknet markets.<\/p>\n<\/blockquote>\n

As part of his arrest, law enforcement seized various assets, including a hardware wallet containing the illegal proceeds generated through his Helix operation.<\/p>\n

However, while the government was still trying to gain access to the seized bitcoin, Gary Harmon used his brother\u2019s credentials to transfer more than 712 BTC<\/a>, valued at approximately $4.8 million at the time, from his brother\u2019s seized device to his own bitcoin wallets in April 2020. He then laundered the proceeds through two online mixers before using them to finance his own expenditures, the DOJ described.<\/p>\n

The Justice Department noted that regarding the Gary Harmon case:<\/p>\n

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The wire fraud charge carries a statutory maximum sentence of up to 20 years in prison; the obstruction of justice charge carries a statutory maximum sentence of 20 years in prison.<\/p>\n<\/blockquote>\n

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FBI<\/a>, IRS<\/a>, Seized bitcoin<\/a>, seized btc<\/a>, Seized Crypto<\/a>, seized cryptocurrency<\/a>, steal crypto from government<\/a>, steal cryptocurrency from government<\/a>, steal from FBI<\/a>, steal from IRS<\/a>, US government<\/a><\/div>\n<\/div>\n

What do you think about Gary Harmon stealing bitcoin that was seized by the federal government? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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