Coin Ninja CEO arrested amid $311 million laundering allegations

Coin Ninja CEO Larry Harmon has been arrested on the charges of conspiracy to launder money and operating a money transmitting business without the license and permit by the Financial Crimes Enforcement Network. Harmon is also the founder of DropBit. Currently, Harmon is going to be sentenced for 30 years in the federal prison.

The arrest warrant was filed at the beginning of February itself which claimed that the Coin Ninja CEO has laundered more than 350,000 BTC (worth more than $311 million). He allowed the Helix users and Grams users to continue making transactions on the dark web market known as AlphaBay. AlphaBay got shut down more than a couple of years ago. Helix is a privacy tool while Grams is a search engine for the dark web.

Coin Ninja CEO bail denied

Coin Ninja CEO requested for bail in the US Federal court only to be denied on the basis of his family living outside the US. The court didn’t trust Harmon would turn up when he will be summoned by the court in the future if he is released on a bail. Also, Harmon is going to be sentenced to a 30-year jail term. So, in such cases, it becomes very difficult to release a convict on bail.

Harmon’s lawyers claimed that all of his assets have been taken and frozen by the FBI and he doesn’t possess any kind of risk to the judiciary.

In an interview with Harmon’s brother by Peter McCormack, Gary Harmon told that all of the assets have been frozen by the FBI. Even its $4000 worth of bitcoins were removed from the lightning node.

DropBit had recently risen to fame among the Bitcoin enthusiasts but as the assets were frozen by the FBI, Gary and his team are paying out of their own pockets to fund the day to day operations of DropBit.

 

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