Canada Imposes Record $126M Fine on Cryptomus for AML Failures
Canada's Financial Transactions and Reports Analysis Centre (FINTRAC) has levied a historic C$176.96 million penalty against Cryptomus operator Xeltox Enterprises Ltd. The Vancouver-based platform failed to report 1,518 large VIRTUAL currency transactions exceeding the C$10,000 threshold within a single month.
FINTRAC investigators linked the unreported transactions to serious financial crimes including fraud, ransomware attacks, sanctions evasion, and child exploitation material distribution. The platform additionally processed over 7,500 unreported transactions involving Iran, violating specific Ministerial Directives.
This enforcement action marks Canada's strongest regulatory response to cryptocurrency compliance failures. The unprecedented fine signals tightening oversight as authorities grapple with illicit crypto flows. Market observers note the case may prompt exchanges to strengthen transaction monitoring systems.
