The FBI has recently issued a caution to the public about the dangers associated with using unlicensed cryptocurrency transfer services. These platforms, which are not registered as Money Services Businesses (MSB) and do not comply with U.S. anti-money laundering regulations, pose significant financial risks to users. According to the FBI, these services are frequently targeted by law enforcement, especially if they are used by criminals to transfer or launder illicit funds. Users risk losing access to their funds if these platforms are taken down by law enforcement actions.
In a detailed public service announcement, the FBI emphasized the importance of using only registered and compliant cryptocurrency transfer services. Users are advised to check if a service is registered with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Furthermore, the FBI warns against services that do not require Know Your Customer (KYC) information, such as name, date of birth, address, and identification before allowing transactions. These precautions help protect individuals from unintentionally engaging in illegal activities and facing subsequent financial losses.
The recent enforcement actions include the takedown of Samourai, an illicit cryptocurrency transfer platform that also offered a crypto mixer service. This service facilitated the laundering of funds derived from criminal activities. Icelandic law enforcement seized Samourai’s domains and web servers, and the platform’s mobile app was removed from the Google Play Store following a seizure warrant. The operation highlighted the ongoing efforts by authorities to clamp down on cryptocurrency platforms that evade regulations and engage in money laundering.
Founders and operators of Samourai, Keonne Rodriguez and William Lonergan Hill, were charged by the U.S. Department of Justice for laundering over $100 million from various criminal enterprises through the platform’s crypto mixing services. They reportedly collected approximately $4.5 million in fees. The indictment revealed that since the launch of their services, over 80,000 BTC (worth over $2 billion at the time of transactions) passed through Samourai, underscoring the massive scale of their operations and the critical need for regulatory compliance in the crypto space.
