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FBI Issues Crypto Warning: Protect Your Assets from Unlicensed Firms

FBI Issues Crypto Warning: Protect Your Assets from Unlicensed Firms

Cryptocurrencies like Bitcoin and Ethereum have taken the world by storm these past few years. While these digital currencies offer some amazing possibilities, their explosive growth has also led to a rise in shady, unregulated services operating outside the law.

A disturbing number of these unlicensed platforms are ignoring the laws and benefiting from not obeying the know-your-customer (KYC) and anti-money laundering rules.

The anonymity of crypto transactions provides the perfect cover for criminals to launder dirty money. Without proper KYC checks and AML functions, illegal gains can easily slip between wallets and exchanges without a trace.

Sketchy crypto bridges and decentralized platforms make it by super low fees simply a few clicks for bad actors to clean their illegal profits right under everyone’s noses.

As crypto keeps blowing up in popularity,law enforcement agencies like the FBI are stepping up their actions to suppress these unlicensed money services enabling financial crimes.

The FBI has now issued a stern public warning, advising people to stay far away from any crypto services not playing by Uncle Sam’s rules. This heads up aims to educate people on how to spot these risky platforms and keep their hard earned money safe.

Understanding the FBI’s Direct Warning

On April 25th, the FBI issued a public announcement urging everyone to steer clear of crypto exchanging services operating without proper registration as Money Services Businesses (MSB) according to U.S. federal law.

The bureau’s warning left no doubt that crypto platforms absolutely must follow the regulations requiring collection of solid Know Your Customer (KYC) intel and compliance with AML protocols. They warned traders to avoid any services slacking on asking for basic ID docs like names, birthdays, and addresses before allowing users to make transactions.

According to the announcement, the FBI has recently taken concrete enforcement actions against shady unlicensed crypto outfits. They cautioned that using this kind of services risks financial disruptions, especially if funds get combined with illegal activity profits.

The alert pointed people to the Financial Crimes Enforcement Network (FinCEN) website to verify if a crypto transmitter is legit registered as an MSB. But the Feds made sure to note that just being on FinCEN’s list doesn’t actually mean a business is 100% safe and risk free.

Risks of Unlicensed Services

Using shady crypto services that don’t follow the rules is just asking for trouble and you will find out soon enough. Mostly those shady organizations letting you act there without proper licenses and anti-money laundering checks in place. The law tends to crack down on these unlicensed exchanges every now and then, seizing their assets and shutting them down.

These unlicensed services are also prime targets for fraud, theft, and data breaches galore. They don’t have to go through the same precise auditing and oversight as their licensed counterparts. Some of the shadier ones intentionally evade the law so they can rip people off or facilitate criminal activity more easily. Their security setups are often a total joke.

Using a service that any reasonable person should’ve known was operating illegally could land you in hot water too. Pleading ignorance ain’t gonna cut it. Do your homework and make sure any crypto platform or money transmitter you deal with is 100% legit before trusting them with your hard earned cash.

Tips to Protect Yourself

When using cryptocurrency services, it’s important to take a couple of steps to avoid scams or illegal activity. Here are some tips from the FBI:

First of all always use Scamminder as your trusted friend out there to double check every site you may want to pay a visit to or more.

Check if the service is registered as a MSB with FinCEN. You can search it at https://www.fincen.gov/msb-state-selector. Registration doesn’t guarantee their doing ok, but unregistered services are riskier. 

Only use services that collect Know Your Customer (KYC) information like your name, date of birth, address, and ID. Those who stick with laws of crypto regulated countries.

Understand that apps in app store or google play may not be legal or legit. Do additional research before using a new cryptocurrency app.

Avoid services that advertise for shady purposes like fixed percentage of returns or wining a huge amount of crypto with just paying a small fee . 

Be cautious of services known to facilitate money laundering, even if they claim legitimacy.

Consider the risks before using platforms favored by cybercriminals and scammers. Even if not directly involved in crime, your funds could get tied up during law enforcement actions (you will see them probably in your dreams if they operate outside your country).


Cryptocurrency and blockchain technology provide many benefits, including secure and fast transactions. However, like any financial system, they can also be misused for illegal purposes if proper precautions are not taken. 

The FBI’s warning highlights the need for cryptocurrency users to be vigilant and conduct due diligence on any services they use. Sticking to reputable, compliant, and registered companies is the best way to avoid potential disruptions or legal issues.

The FBI’s tips provide common-sense guidance for using cryptocurrency safely and legally. Following their advice minimizes your risks. However, you should also stay informed on the latest threats and best practices. With knowledge and vigilance, cryptocurrency can fulfill its potential to benefit society through faster, more secure, decentralized transactions.

One Reply to “FBI Issues Crypto Warning: Protect Your Assets from Unlicensed Firms”

  1. Sokoote Shab says:

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