If you have money to burn, congratulations—but you'd better not actually set fire to a pile of cash. Burning money is illegal in the United States and ispunishable by up to 10 years in prison, not to mention fines.
It's also illegal to tear a dollar bill and even flatten a pennyunder the weight of a locomotive on the railroad tracks.
The laws making defacing and debasing currency a crime have their roots in the federal government's use of precious metals to mint coins. Criminals were known to file down or cut off portions of those coins and keep the slivers for themselves while spending the altered currency.
The odds of being prosecuted under the federal laws that making burning money or defacing coins, however, are fairly slim. First, coins now contain very little precious metals. Second, defacing printed currency in an act of protest is often compared to burning the American flag. That is to say, burning money may be considered protected speech under the U.S. Constitution's First Amendment.
What the Law Says About Burning Money
The section of federal law that makes tearing up or burning money a crime isTitle 18, Section 333, which was passed in 1948 and reads:
"Whoever mutilates, cuts, defaces, disfigures, or perforates, or unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, or Federal Reserve bank, or the Federal Reserve System, with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued, shall be fined under this title or imprisoned not more than six months, or both."
What the Law Says About Mutilating Coins
The section of federal law that makes mutilating coins a crime is Title 18, Section 331, which reads:
"Whoever fraudulently alters, defaces, mutilates, impairs, diminishes, falsifies, scales, or lightens any of the coins coined at the mints of the United States, or any foreign coins which are by law made current or are in actual use or circulation as money within the United States; or whoever fraudulently possesses, passes, utters, publishes, or sells, or attempts to pass, utter, publish, or sell, or brings into the United States, any such coin, knowing the same to be altered, defaced, mutilated, impaired, diminished, falsified, scaled, or lightened shall be fined under this title or imprisoned not more than five years, or both."
A separate section of Title 18 makes it illegal to "debase" coins minted by the U.S. government, meaning to shave some of the metal off and make the money less valuable. That crime is punishable by fines and up to 10 years in prison.
Prosecutions Are Rare
It's pretty rare for someone to be arrested and charged with defiling or debasing U.S. currency. Even those penny press machines found at arcades and some seashore attractions are in compliance with the law because they're used to create souvenirs and not to debase or shave metal off the coin for profit or fraud.
Perhaps the highest profile case of currency mutilation dates to 1963: An 18-year-old U.S. Marine named Ronald Lee Foster was convicted of whittling away the edges of pennies and spending the 1 cent coins as dimes in vending machines.
Foster was sentenced to a year of probation and $20. But, more seriously, the conviction prevented him from being able to get a gun license. Foster made national news in 2010 when President Barack Obama pardoned him.
Why Illegal?
So why does the government care if you destroy money if it's technically your property anyway?
Because the Federal Reserve has to replace any money taken out of circulation, and it costs anywhere from about 5.5 cents to make a $1 bill to about 14 cents for a $100 bill. That may not be much per bill, but it adds up if everyone starts burning their money.
FAQs
There are protections in place under federal law that are designed to ensure integrity of coins and currency. If you violate laws related to coins and currency, you could be charged with a federal crime and could face the potential for jail time or other serious penalties. You could also be left with a criminal record.
Why is destroying money a crime? ›
In the United States, burning banknotes is prohibited under 18 U.S.C. § 333: Mutilation of national bank obligations, which includes "any other thing" that renders a note "unfit to be reissued".
What is the punishment for defacing currency? ›
Shall be fined under this title or imprisoned not more than five years, or both.
What happens if you rip a 100 dollar bill? ›
Currency Procedures
Under regulations issued by the Department of the Treasury, mutilated United States currency may be exchanged at face value if: More than 50% of a note identifiable as United States currency is present.
Is it illegal to destroy pennies? ›
18 U.S.C. 331 makes it illegal to “alter, deface, mutilate, impair, diminish, falsify, scale, or lighten” any coin minted in the U.S. or any foreign coin being used as currency in the U.S.
Is it illegal to burn a $100 bill? ›
Burning or otherwise mutilating money is illegal because the government wants to preserve the integrity and stability of the nation's currency system.
Is it illegal to write a check for less than $1? ›
Whoever makes, issues, circulates, or pays out any note, check, memorandum, token, or other obligation for a less sum than $1, intended to circulate as money or to be received or used in lieu of lawful money of the United States, shall be fined under this title or imprisoned not more than six months, or both.
Why is it illegal to burn paper money? ›
Specifically, this is a violation of Title 18, Section 333 of the United States Code, which says that “whoever mutilates, cuts, disfigures, perforates, unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, Federal Reserve ...
Are $1,000 dollar bills illegal? ›
The United States no longer issues bills in larger denominations, such as $500, $1,000, $5,000, and $10,000 bills. But they are still legal tender and may still be in circulation. The U.S. Bureau of Engraving and Printing creates U.S. paper currency. Learn about paper money and how to recognize counterfeit currency.
Is it illegal to drill a hole in a penny? ›
Notably, all forms of United States currency are protected under federal law, including paper bills and coins. Simply put, Title 18 U.S. Code 331 makes it a federal offense to fraudulently alter, mutilate, or falsify coins in the United States.
In the US, it's technically illegal to deface currency, but it's more about the intent. If you're just scribbling your name or doodling on a dollar bill, it's generally not gonna get you in trouble unless you're trying to commit fraud or make the bill unusable.
Is it illegal to flatten a penny? ›
In the United States, U.S. Code Title 18, Chapter 17, Section 331 prohibits "the mutilation, diminution and falsification of United States coinage." The foregoing statute, however, does not prohibit the mutilation of coins, if the mutilated coins are not used fraudulently, i.e., with the intention of creating ...
Is it a felony to rip up money? ›
Section 331 of Title 18 of the United States code provides criminal penalties for anyone who fraudulently alters, defaces, mutilates impairs, diminishes, falsifies, scales, or lightens any of the coins coined at the Mints of the United States.
Why is printing money illegal? ›
Counterfeit money is currency produced outside of the legal sanction of a state or government, usually in a deliberate attempt to imitate that currency and so as to deceive its recipient. Producing or using counterfeit money is a form of fraud or forgery, and is illegal in all jurisdictions of the world.
What happens if someone rips your money? ›
Individuals, financial institutions, and businesses may contact the Department of the Treasury's Bureau of Engraving and Printing (BEP) if they are in possession of mutilated U.S. currency, meaning that the currency has been damaged to the extent that one-half or less of the original note remains, or its condition is ...
Is ripped money allowed? ›
Lawful holders of mutilated currency may receive a redemption at full value when: Clearly more than 50% of a note identifiable as United States currency is present, along with sufficient remnants of any relevant security feature; or.
Is it illegal to print money but not use it? ›
It's Illegal to Reproduce U.S. Currency
So whether your goal is to spend the fake cash or just have some cool-looking prop money, making copies of real currency goes directly against federal law.
