April 25, 2024 at 05:19PM
The FBI warned against using unlicensed cryptocurrency platforms due to financial risks and potential law enforcement takedowns. It advised checking for Money Services Business registration, providing KYC information, and being cautious with cryptocurrency services. This comes after the takedown of Samourai, its founders’ charges for money laundering, and the substantial sums involved in criminal activities on the platform.
The FBI has issued a cautionary advisory against the use of unlicensed cryptocurrency transfer services, emphasizing the financial risks associated with potential law enforcement action against these platforms. The announcement targets crypto transfer platforms not registered as Money Services Businesses (MSB) and non-compliant with U.S. federal anti-money laundering laws. The FBI further warns that individuals using such services may risk losing access to their funds if law enforcement operations target these businesses. As a response, individuals are advised to verify the registration of a transfer service as an MSB with the U.S. Treasury Department’s Financial Crimes Enforcement Network, be cautious about financial services that do not request KYC (Know Your Customer) information, understand the legal compliance of services available on app stores, avoid using services for illegal purposes, and be careful when using cryptocurrency services linked to criminal activities.
This warning from the FBI follows the shutdown of Samourai, an illicit cryptocurrency transfer platform that facilitated money laundering through its crypto mixer service. Icelandic law enforcement seized Samourai’s domains and web servers, while the Google Play Store removed its mobile app. The U.S. Department of Justice has charged the platform’s founders for laundering over $100 million from criminal enterprises through Samourai’s services. The indictment indicates that over 80,000 BTC, worth over $2 billion at the time of each transaction, has passed through Samourai’s services, demonstrating the scale of its illicit activities. The DOJ has also accused Samourai’s operators of knowingly enabling large-scale money laundering and sanctions evasion despite presenting the platform as a privacy service.
These meeting notes highlight the FBI’s proactive response to illicit cryptocurrency activities and emphasize the potential risks associated with unlicensed transfer services.