Canada’s AML Regulator Hits Cryptomus With Record $126M Penalty Over Systemic Compliance Failures
Canadian anti-money laundering authorities just dropped the hammer—and it's a $126 million sledgehammer aimed squarely at crypto platform Cryptomus.
The Compliance Catastrophe
This isn't just a slap on the wrist—it's one of the largest fines ever levied against a cryptocurrency entity in North America. Regulators uncovered what they're calling 'systemic and persistent' compliance failures that created massive gaps in the financial surveillance net.
Pattern of Neglect
The watchdog's investigation revealed multiple layers of breakdowns—from inadequate customer due diligence to suspicious transaction monitoring that seemed more decorative than functional. The $126 million figure reflects both the severity of the lapses and the duration they persisted.
Industry Wake-Up Call
This enforcement action sends shockwaves through the digital asset space. Compliance can't be an afterthought anymore—not when regulators are willing to deploy nine-figure penalties to make their point. Traditional finance veterans are probably smirking—another crypto firm learning the hard way that regulators don't care about your 'disruptive technology' when it disrupts their rules.
FINTRAC Slaps $126 Million Fine On Crypto Exchange Cryptomus
According to an official announcement on October 22, Canada’s FINTRAC has slapped a massive penalty of $126 million on Vancouver-based digital assets trading platform Cryptomus. The exchange was found in breach of multiple federal AML and counter-terrorist financing laws.
Notably, the fine imposed by FINTRAC on the trading platform is the largest penalty slapped on a Canada-based VIRTUAL assets entity to date. Cryptomus failed to report more than 1,000 suspicious transactions between July 1, 2024, and July 31, 2024.
In addition to the 1,000 unreported transactions, Cryptomus was also found guilty of not reporting 1,500 large digital currency transactions with questionable digital trails. It also failed to comply with a Ministerial Directive.
The regulator stated that the unreported transactions were largely related to child sexual abuse material, ransomware payments, fraud, and sanctions evasion. Further, Cryptomus failed to keep its compliance policies updated.
Per the FINTRAC press release, Cryptomus also did not assess risks of illicit finance, and failed to report crucial business changes as required by law. Commenting on the development, FINTRAC CEO Sarah Paquet said:
Given that numerous violations in this case were connected to trafficking in child sexual abuse material, fraud, ransomware payments and sanctions evasion, Fintrac was compelled to take this unprecedented enforcement action.
It should be highlighted that the Canadian financial regulator has been having a relatively busy 2025. Earlier this year, in February, FINTRAC issued an alert about the role of virtual asset funds in cleaning illicit funds tied to fentanyl and opioid trafficking.
Similarly, in September, the Canadian police confirmed the largest digital assets seizure in the country’s history. At the time, Canada’s RCMP seized digital assets worth $40 million belonging to Montreal-based crypto exchange TradeOgre.
2025: The Year Of Penalties
2025 has seen an uptick in digital assets entities and traders facing fines for breach of laws. For example, Hungary’s financial watchdog announced that traders could face five years in prison for trading on unauthorized digital assets trading platforms.
Similarly, one of the largest global digital assets exchanges by trading volume, OKX, pleaded guilty to operating an unlicensed money transmitting business in the US. As a result, the exchange was fined $504 million.
That said, some countries’ citizens are pushing back against draconian digital assets laws. For instance, a controversial digital assets bill in Poland – Bill 1424 – is facing pushback from the Polish virtual assets community. At press time, Bitcoin trades at $109,401, up 1.1% in the past 24 hours.
