The FBI in a Thursday warning emphasized the financial risks associated with using unregistered cryptocurrency transfer services, especially considering potential law enforcement actions against these platforms.

The focus of this public service announcement is on crypto transfer platforms that operate without proper registration as Money Services Businesses (MSB) and fail to comply with anti-money laundering regulations mandated by the U.S. federal law.

Such platforms are frequent targets of law enforcement operations, particularly when criminals exploit them for transferring or laundering unlawfully acquired funds, like in the case of ransomware payments.

FBI’s PSA, released on its Internet Crime Complaint Center, cautioned Americans that,

Using a service that does not comply with its legal obligations may put you at risk of losing access to funds after law enforcement operations target those businesses.

The FBI said it had recently conducted law enforcement operations against unregistered cryptocurrency transfer services “that purposely break the law or knowingly facilitate illegal transactions.” It added that these services will continue to be investigated by law enforcement.

Steps to Avoid Using Unregistered Cryptocurrency Transfer Services

For individuals considering the use of cryptocurrency transfer services, “a few simple steps can prevent unintentional use of non-compliant services,” the FBI said. The agency advised the following security tips:

• Checking the registration status as an MSB with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
• Exercising caution with financial services that do not request KYC information (such as name, date of birth, address, and ID) before facilitating money or cryptocurrency transfers.
• Understanding that the presence of an app in an app store does not necessarily signify its legality or compliance with federal requirements.
• Refraining from using services that openly advertise themselves for illegal purposes.
• Exercising vigilance when using cryptocurrency services known to be utilized by criminals for money laundering.

Samourai Wallet’s Unlicensed Money Transmitting Business Busted

The FBI’s warning comes in the wake of the recent crackdown on Samourai, an illicit cryptocurrency transfer platform that offered a crypto mixer service facilitating the laundering of funds obtained through criminal activities.

The Icelandic law enforcement authorities seized Samourai’s domains (samourai[.]io and samouraiwallet[.]com) and web servers. The Google Play Store also removed the Samourai Wallet Android mobile app that was downloaded over 100,000 times, before the seizure was initiated.

The U.S. Department of Justice charged Keonne Rodriguez and William Lonergan Hill, the platform’s founders and operators, with laundering over $100 million from various criminal enterprises through Samourai’s crypto mixing services, accruing approximately $4.5 million in fees.

According to the superseding indictment, “Since the start of the Whirlpool service in or about 2019 and of the Ricochet service in or about 2017, over 80,000 BTC (worth over $2 billion applying the BTC-USD conversion rates at the time of each transaction) has passed through these two services operated by Samourai.”

The DOJ stated, “While offering Samourai as a ‘privacy‘ service, the defendants knew that it was a haven for criminals to engage in large-scale money laundering and sanctions evasion.

“Indeed, as the defendants intended and well knew, a substantial portion of the funds that Samourai processed were criminal proceeds passed through Samourai for purposes of concealment,” the unsealed indictment said.

Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

Related

In a stunning financial shift, the Japanese yen has reached a 34-year low against Bitcoin, which also hit all-time highs in 14 countries, fueled by optimism surrounding new spot Bitcoin ETFs.

Yen Hits 34-Year Low as Bitcoin Ascends, Spotlighting Global Shift Towards Cryptocurrency

According to Crypto.News, the Japanese yen plunged to a 34-year low as officials sought to contain the economy’s hyperinflation. According to Bloomberg, Japan’s sovereign fiat money suffers mostly from the disparity between local interest rates and those in the United States Federal Reserve rates.

While the Japanese government works through this problem, Bitcoin (BTC) has surpassed the yen in direct monetary worth. On April 25, Google Finance revealed that one Japanese yen equaled 0 Bitcoin.

In February, BTC soared against various fiat currencies, reaching all-time highs in 14 nations. The industry was propelled by optimism about the newly approved spot Bitcoin ETFs.

Following the revelation, many people on social media praised Bitcoin as “sound money” and an innovation capable of cultivating financial independence from the global traditional economic bubble.

Users reaffirmed what BTC maxi Michael Saylor calls “Bitcoin’s superior design,” referencing Satoshi Nakamoto’s protocol, which ensured that only 21 million BTC would exist.

It is impossible to surpass this limit because it is hard-coded into the Bitcoin blockchain. A halving controls inflation by lowering the number of new tokens in circulation. The halving occurred last week, with Bitwise CIO Mat Hougan opining that the event would largely benefit BTC’s market value in the long term.

Bitcoin Reaches New Heights in 14 Countries Amidst Currency Volatility and Economic Shifts

In a February report, Bitcoin has set an all-time high in 14 countries, including Turkey, Argentina, Egypt, Pakistan, Nigeria, Japan, and Lebanon, despite selling 25% down from its top of $69,000.

The contradictory position highlights the considerable devaluation of these countries’ currencies versus the United States dollar (USD) over the last two years. The global financial market has been extremely unpredictable in recent years, as cryptocurrencies such as Bitcoin have grown in many countries as a hedge against economic uncertainty.

For example, the Lira has devalued dramatically in Turkey, with the USD/TRY exchange rate rising from roughly 7.80 in November 2021 to 31.02. Similarly, the Argentine peso has fallen dramatically, from around 98 to more than 838 versus the US dollar in the same period.

The developments reflect these countries’ greater economic issues and inflationary pressures, contributing to Bitcoin’s growing popularity as an alternative investment and store of value.

Even in Japan, famed for its strong economy, the yen has devalued from roughly 104 to 150 versus the US dollar, indicating a loss of purchasing power.

Since Bitcoin’s birth, the USD has fallen six orders of magnitude versus BTC, showing cryptocurrency’s meteoric rise in the global financial scene. Once considered a digital curiosity, Bitcoin has evolved into a vital asset for investors seeking refuge from currency depreciation and economic uncertainty.

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