FBI Warns Against Using Unregistered Crypto Services: Recent Enforcement Actions Taken

The FBI has issued a warning to US citizens against using unregistered crypto services to transmit assets, emphasizing the importance of avoiding services that are not registered as Money Services Businesses (MSBs) under US federal law.

The agency’s advisory also urged individuals to steer clear of services that do not comply with anti-money laundering (AML) requirements and do not collect know-your-customer (KYC) information. Users were encouraged to verify whether a service is registered as an MSB with the US Treasury’s Financial Crimes Enforcement Network (FinCEN), although registration does not equate to government endorsement.

Furthermore, the FBI cautioned 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 warned of potential financial disruptions or loss of funds in the event of enforcement actions by authorities.

Recent enforcement operations by the FBI have targeted unregistered crypto services, with charges typically related to operating an unlicensed money service business and money laundering. In a notable case, the FBI seized the website of the Samourai Wallet and arrested its co-founders for allegedly operating an unlicensed money-transmitting business through the wallet’s coin-mixing features, which were allegedly used for money laundering.

Past enforcement actions 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 to US citizens to exercise caution when using crypto services and to ensure compliance with regulatory requirements to avoid potential legal repercussions.