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Originally Posted by Ari
It should be noted you can destroy any coin, and it's not illegal to deface money. It's only illegal if you do it to perpetrate a fraud.
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That's quite true for coins.
See 18 U.S.C. sec. 331. The analysis is a bit different with paper money, though. There, the standard for criminality is multilating, defacing, etc. with the intent to render the bill "unfit to be reissued . . . ."
18 U.S.C. sec. 333.