The Federal Reserve itself is illegal, of course, being blatantly unconstitutional, but the lying criminals in Washington pass "laws" making it "illegal" to deface the counterfeit money they've authorized as "legal tender". Laughable!
In the comments at the video, someone was government ass-kissing enough to quote the "law":
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
CHAPTER 17--COINS AND CURRENCY
Sec. 333. Mutilation of national bank obligations
Whoever mutilates, cuts, defaces, disfigures, or perforates, or unites or cements together, or does any other thing to any bank bill, draft, note,...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.
Really, I can't stop laughing.
Anyway, End the Fed!