18 U.S.C. 331 addresses fraudulent alteration, impairment, or mutilation of covered coins and specified dealings in those coins with knowledge of their alteration. The statute’s fraud requirement matters. It is inaccurate to describe every craft project involving a coin as a violation of this section. [1]
Elements and penalties
The section authorizes up to five years in prison and an ordinary individual felony fine up to $250,000. [2] It covers U.S.-minted coins and specified foreign coins used as money in the United States. Other counterfeiting, melting, export, or consumer-protection rules can apply independently, so section 331 is only part of the inquiry. [1]
The first clause addresses fraudulent alteration itself; the second addresses specified knowing possession or circulation of altered coins with the required fraudulent character. A seller’s disclosure and the claimed authenticity, denomination, or metal content can therefore be important. Separate rules can restrict melting or exporting certain coins even where there is no section 331 fraud, so the absence of deceptive intent does not answer every possible legal issue. [1]
What to examine in the actual case
- Identify the coin and the particular alteration.
- Preserve the listing, labeling, and statements to buyers.
- Separate deception about the item from any independent melting, export, or counterfeiting restriction.
Practical example
Selling an altered coin as an authentic higher-value coin creates a fraud question different from openly selling a clearly described novelty. The description and intended deception are material facts.
For related situations, see federal false-statement charges and false loan statements under Section 1014.
Primary sources
Sources checked: October 31, 2026.