In its warning to Americans, the FBI has highlighted the risks associated with utilizing unregistered cryptocurrency money-transmitting services that do not comply with federal laws. These laws mandate adherence to anti-money laundering requirements, and failure to comply can result in financial disruptions for users. Individuals are advised to verify if a service is registered as a Money Services Business with the U.S. Treasury Department’s Financial Crimes Enforcement Network before using it. The FBI has also cautioned against services that do not collect Know Your Customer (KYC) information from customers when required, as well as the mere presence of an app in an app store does not guarantee compliance with federal requirements. Recent law enforcement operations have targeted cryptocurrency services operating without proper licensing, emphasizing the potential risks for individuals who may lose access to their funds in such cases.
The FBI has also warned against the use of crypto mixers, which are increasingly under scrutiny by the US government for potential money laundering activities. Following sanctions imposed on Blender.io and the blocking of addresses linked to the Tornado Cash mixer, the US government has intensified its crackdown on such services. This includes proposing to label crypto mixers as a “primary money laundering concern” and making arrests of individuals associated with these services. Recently, the founders and CEO of Samourai Wallet, a privacy-focused Bitcoin wallet and mixer, were apprehended by the Department of Justice for laundering criminal proceeds. Further actions have been taken, such as seizing web servers and domain names, as well as issuing seizure warrants for mobile apps associated with these services.
Individuals are urged to exercise caution when using cryptocurrency platforms known to be used by criminals for money laundering activities. The FBI emphasized the importance of verifying the legality and compliance of these services before utilizing them. The government’s crackdown on unregistered cryptocurrency money-transmitting services and crypto mixers aims to protect individuals from potential financial disruptions due to law enforcement actions. By avoiding services that openly advertise themselves for illegal purposes and ensuring compliance with anti-money laundering regulations, individuals can minimize their risks of facing issues with their funds as a result of using non-compliant services.
In the aftermath of recent law enforcement operations targeting unlicensed cryptocurrency services, the FBI has reiterated the importance of maintaining legal compliance when using crypto money-transmitting platforms. By verifying the registration status of a service with the US Treasury Department’s Financial Crimes Enforcement Network, individuals can ensure that they are using a legitimate and compliant platform. The government’s intensified crackdown on crypto mixers, including the labeling of such services as a “primary money laundering concern” and making arrests of individuals associated with these platforms, further highlights the risks involved in using non-compliant services. Users are urged to exercise caution and be vigilant in verifying the legality and compliance of cryptocurrency services before engaging with them.
