FBI Urges Americans To Steer Clear Of Unauthorized Crypto Money Services

The Federal Bureau of Investigation (FBI) is warning Americans against using crypto services from unregistered companies.

According to the FBI’s Internet Crime Complaint Center (IC3), U.S. citizens should avoid crypto services from companies that are not registered as Money Services Businesses (MSBs) under federal law and do not comply with anti-money laundering (AML) rules.

The FBI wrote in a statement: “A few simple steps can prevent inadvertent use of illegal services and avoid cryptocurrency transfer services that skip customer identification (KYC) when required.”

JUST IN: 🇺🇸 FBI warns Americans against using non-KYC #Bitcoin and crypto money transmitting services. pic.twitter.com/BkSuG6MiCE

— Bitcoin Magazine (@BitcoinMagazine) April 25, 2024

KYC information typically includes name, date of birth, and address, along with other data. The FBI also suggests that users check whether a business is registered as a Money Services Business through the Financial Crimes Enforcement Network (FinCEN) lookup tool. When using this tool, cryptocurrency companies like Coinbase and Kraken (whose legal name is Payward Financial Inc) are all shown to be licensed.

The statement said: “The FBI has recently taken enforcement actions against crypto services that are not licensed under federal law. Users of unlicensed crypto transfer services may be affected by these actions, especially if their cryptocurrency is commingled with funds of illegal origin.”

The FBI also warns users not to use crypto services that do not require KYC information, such as name or address, before allowing you to send or receive cryptocurrency. The agency notes that apps in app stores may not necessarily comply with federal compliance requirements or support legal services.

The FBI’s statement added: “Crypto transfer services that intentionally violate the law or intentionally facilitate illegal transactions will be investigated by law enforcement. Using a service that does not comply with legal obligations also puts users at risk of losing access to their funds after law enforcement actions target those businesses.”

On April 12, the FBI investigated the hack of Bitcoin developer Luke Dashjr’s wallet. Mike Schmidt, co-founder of Brink, was forced to provide information about the core Bitcoin developers who attended the 2022 CoreDev Atlanta event.

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