Stealing Bitcoin From the IRS?
Plus, Bitcoin Price is Pumping
Cleveland man steals back $12 million worth of Bitcoin from the IRS
Gary Harmon, 31, of Cleveland, Ohio, allegedly stole 712 Bitcoins from the IRS. If that’s not unusual enough, Harmon is accused of swiping the same 712 Bitcoins that the IRS had seized from his brother, Larry Harmon.
Larry Harmon had been the CEO of the darknet crypto mining service called Helix. Larry was arrested in 2020 and pleaded guilty to one count of conspiracy to launder money instruments in August 2021. As part of his plea agreement, he agreed to forfeit all of his ill-gotten gains and turned over the private keys to his Bitcoin stash to the IRS.
Larry’s Trezor hardware wallets were kept in an IRS storage locker, but Gary had retained his brother’s recovery seed words and was able to access all of Larry’s Bitcoin.
Why the IRS had not moved the coins to a secure wallet was unclear. As they say, “not your keys, not your coins.”
And Then the Brother Got a Bit Greedy
While Larry was on trial in 2020, his family claimed that with his assets frozen, they were forced to start a GoFundMe page to fund Larry’s legal expenses. However, Gary, after being laid off from a crypto company called Coin Ninja, and receiving unemployment, suddenly purchased a $1.2 million condo in Cleveland. Gary purchased the condo through a loan from BlockFi, secured by, you guessed it, Larry’s Bitcoin stash.
As if that weren’t enough, Gary spent extravagantly on strippers and private jet trips. His cell phone even flaunted photos of Gary and his lavish lifestyle. Talk about red flags.
This is yet another case of Bitcoin being used for illicit purposes. (Much like fiat cash is.)
It has nothing to do with the technology of Bitcoin, or the Bitcoin network itself, just another tale of bad actors.
Gary Harmon agreed to forfeit more than $12 million in crypto, including 647 Bitcoins and 17.4 million Dogecoins. He has yet to be sentenced, but could face up to 40 years in prison. Be careful who you steal from.
Bitcoin Price is Up 15% This Year
Small victories are good.
Bitcoin surged Thursday past $19,000. It started the year at $16,500.
Well, the supply of Bitcoin is not getting any larger. There will always be a maximum of 21 million Bitcoins.
And adoption is growing. All over the world.
If demand is rising, and supply is fixed, well, you know . Number go up.
Econ 101.
Gemini vs. Genesis: War of Words Escalates
It’s Cameron Winklevoss versus Barry Silbert. The recent “liquidity issues” involving Silbert’s Genesis Capital and his related company DCG have spawned a Twitter war, one that was instigated by Gemini’s co-founder Cameron Winklevoss.
Gemini and other crypto exchanges had lent Bitcoin and altcoins to Genesis to enable their customers to earn interest on their holdings. But following the meltdowns at FTX and Three Arrows Capital, Genesis halted all redemptions from its platform.
Gemini customers currently have $900 million of crypto deposits frozen at Genesis.
Cameron’s open letter to Silbert, posted publicly on Twitter, contained the following allegations and statements:
“You have been engaging in bad faith stall tactics.”
“You hid behind lawyers, investment bankers, and process.”
“Your behavior is not only completely unacceptable, it is unconscionable.”
Click into it. It’s worth a three-minute read. Stay tuned.
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Issue No. 91, January 13, 2023
Rick Mulvey is a CPA, crypto consultant, and frequent contributor to Bitcoin Magazine. He writes about all things Bitcoin, and yells at the Yankees and Giants. He also runs marathons and makes wine, neither professionally.