The FBI Warns Against Using Unregistered Crypto Services
On April 25, the FBI issued a warning to US citizens to avoid using unregistered crypto services for transmitting assets. The agency emphasized that users should steer clear of crypto money transmitting services that are not registered as Money Services Businesses (MSBs) under US federal law.
In addition to avoiding services that are not compliant with anti-money laundering (AML) requirements and do not collect know-your-customer (KYC) information, the FBI advised users to verify whether a service is registered as an MSB with the US Treasury’s Financial Crimes Enforcement Network (FinCEN). It is important to note that registration does not equate to government endorsement or legitimacy.
The warning also highlighted that third-party listings do not signify government approval, as an app’s presence on an app store does not automatically make it a legal service.
Users were cautioned about the risks involved, such as financial disruptions or loss of funds, when enforcement actions are carried out by authorities. However, the notice clarified that authorities are not targeting users directly for fines or penalties as part of enforcement efforts.
Recent enforcement operations conducted by the FBI targeted unregistered crypto services, with charges related to the operation of unlicensed money service businesses and money laundering. One notable case involved action against the Samourai Wallet, resulting in the seizure of the website and the arrest of its two co-founders. The founders were charged with operating an unlicensed money-transmitting business for offering coin-mixing features that were allegedly used for money laundering.
Previous cases have also focused on operators of coin mixers like Tornado Cash, ChipMixer, and Helix, as well as operators of foreign crypto exchanges such as Bitzlato and BTC-e. The FBI’s warning serves as a reminder for users to exercise caution and ensure compliance with regulatory guidelines when engaging with crypto services.
