Cleveland Man Pleads Guilty to Stealing Over $4.8 Million in Seized Bitcoin

Gary James Harmon, 31, of Cleveland, Ohio, has pleaded guilty to stealing over 712 seized Bitcoin, valued at approximately $4.8 million, from his brother’s pending criminal case.

The Bitcoin was seized by law enforcement as part of an investigation into his brother, Larry Dean Harmon, who was convicted of running a money laundering service known as Grams-Helix.

According to court documents, Gary Harmon used his brother’s credentials to recreate the Bitcoin wallets stored on the seized device and covertly transferred the stolen funds to his own wallets.

He then laundered the proceeds through two online Bitcoin mixer services before using the laundered Bitcoins to finance large purchases and other expenditures.

As part of his plea, Gary Harmon agreed to the forfeiture of cryptocurrencies and other properties derived from the fraudulently taken proceeds, including over 647.41 Bitcoin, 2.14 Ethereum, and 17,404,400.64 Dogecoin, worth over $12 million due to the increase in market prices.

The case is being prosecuted by Assistant U.S. Attorney Christopher B. Brown and Trial Attorney C. Alden Pelker, with assistance from Paralegal Specialist Michon Tart and former Paralegal Specialist Chad Byron.

Gary Harmon faces up to 20 years in prison for the wire fraud charge and up to 20 years in prison for the obstruction of justice charge.

The sentencing hearing is scheduled for March 17, 2023, in U.S. District Court.

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