FBI Issues Alert on Crypto and Unlicensed Money Transmitter Business

This is not at all surprising to me. I’ve been saying it for well over a year now. Non-compliance with KYC is public enemy number one in the crypto enforcement sector. I’m currently defending multiple Unlicensed Money Transmitter criminal cases.

If the bare elements are met, an 18 U.S.C. 1960 prosecution is an easy case to score a conviction. It’s practically a strict liability crime.

Prosecutors must prove: (1) Conduct of Business: The defendant conducted, controlled, managed, supervised, directed, or owned all or part of a money transmitting business. 2. Licensing: The business was operated without the appropriate state or federal money transmitting license. 3. Knowledge: The defendant knowingly operated the business without the required licenses.

Punishment: A conviction under 18 U.S.C. § 1960 carries a term of imprisonment term of not more than 5 years.