Canada’s FINTRAC Imposes Record $126M Fine on Cryptomus for Compliance Failures
Canada's financial intelligence unit has issued its largest-ever penalty against a cryptocurrency entity. Cryptomus, operated by Vancouver-based Xeltox Enterprises Ltd., faces a C$176.96 million ($126 million) fine for systemic anti-money laundering violations.
The platform failed to report over 1,000 suspicious transactions within a single month, including transfers linked to darknet markets and Iranian entities. FINTRAC investigators connected these lapses to criminal activities ranging from child exploitation material to sanctions evasion.
"This enforcement action reflects the gravity of repeated compliance failures," stated FINTRAC CEO Sarah Paquet. The penalty underscores regulators' increasing scrutiny of crypto platforms facilitating illicit finance.
