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Warning from FBI
The Federal Bureau of Investigation (FBI) issued a caution to citizens of the United States on April 25 advising against the use of unregistered crypto services for the transfer of assets. The agency emphasized the importance of avoiding crypto money transmitting services that are not registered as Money Services Businesses (MSBs) according to US federal law. It also highlighted the significance of utilizing services that comply with anti-money laundering (AML) requirements and collect know-your-customer (KYC) information.
Importance of Registration
Individuals were urged to verify the registration status of a service as an MSB with the US Treasury’s Financial Crimes Enforcement Network (FinCEN). However, the FBI clarifies that registration does not equate to a government recommendation, certification of legitimacy, or endorsement. Listing on third-party platforms such as app stores also does not guarantee government approval.
Risks to Users
Users were warned about the potential for financial disruptions or loss of funds in the event of enforcement actions by authorities against unregistered services. While the notice did not indicate that users would be fined or penalized directly, it underscored the risks associated with non-compliant services.
Recent Enforcement Actions
The FBI disclosed recent enforcement operations targeting unregistered crypto services, citing previous cases as evidence. Notable instances included charges related to the operation of unlicensed money service businesses and money laundering.
On April 24, authorities took action against the Samourai Wallet, seizing the website and arresting its co-founders. The founders faced charges of operating an unlicensed money-transmitting business allegedly used for money laundering due to the wallet’s coin-mixing features.
Previous cases also involved investigations into operators of coin mixers such as Tornado Cash, ChipMixer, and Helix, as well as operators of foreign crypto exchanges including Bitzlato and BTC-e.
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