FBI Warning: Use Caution with Unregistered Crypto Money-Transmitting Services
The FBI Issues Warning on Unregistered Crypto Money-Transmitting Services
The US Federal Bureau of Investigation (FBI) has issued a warning to Americans regarding the use of crypto money-transmitting services that are not registered as Money Services Businesses (MSBs) in accordance with United States federal law. The FBI emphasized the importance of adhering to anti-money laundering requirements outlined in federal laws.
In a statement released by the FBI’s Internet Crime Complaint Center (IC3), individuals are urged to avoid crypto services offered by entities not registered as MSBs and failing to comply with anti-money laundering regulations. The FBI highlighted the importance of verifying the registration of crypto money-transmitting services with the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) before utilizing them.
The statement also warned against using services that do not collect Know Your Customer (KYC) information from customers when required, as well as services that openly advertise themselves for illegal purposes. The FBI advised individuals to exercise caution when using cryptocurrency platforms known to be utilized by criminals for money laundering activities.
Recent law enforcement operations conducted by the FBI against unlicensed cryptocurrency services were also highlighted in the statement. Users of such services may face financial disruptions, particularly if their cryptocurrency becomes commingled with funds acquired through illicit means.
The US government has intensified its crackdown on crypto mixers in recent years, imposing sanctions on platforms like Blender.io and Tornado Cash. The Department of Justice (DOJ) has also made headlines by apprehending the founders of Samourai Wallet for allegedly laundering criminal proceeds.
Overall, the FBI’s warning serves as a reminder for individuals to exercise caution and due diligence when using crypto money-transmitting services to avoid potential legal and financial consequences.
