Fed Seize Millions in Crypto Only To Lose Them To A Hacker

The time Fed lost millions in crypto to a hacker.

Lary Harmon operated a crypto mixer called Helix from 2014-2017 where he was responsible for completing 356,000 Bitcoin transactions.

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Lary later pleaded guilty for helping launder nearly $300 million via his crypto mixer.

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US Fed arrested Lary and seized all his cryptocurrencies that were worth millions.

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In April 2020, IRS agents realized Bitcoin had disappeared from the addresses they had seized.

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The judge ordered Lary to hand over the seedsphrase to authorities to transfer the remaining funds that were worth $40M at the time to a secure wallet.

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Lary later informed the police that the culprit was his brother Gary who lived across the hall from Lary.

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Gary was arrested in July 2021, on money laundering and other crimes.

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