The U.S. Bureau of Engraving and Printing, which prints American currency, the U.S. Mint, which makes American coins, and the Federal Reserve, which regulates money and distributes currency, destroy money when it becomes too mutilated or worn out to continue circulating. read more
Yes, it is illegal to destroy a penny. What's interesting is at my local zoo, and other city parks we have these machines that you put pennies in and you crank them through a device that stretches them and puts a print on them. read more