Global: Canadian Regulator Slaps Cryptomus with C$177 Million Fine for AML Breaches

The Financial Transactions and Reports Analysis Centre of Canada (Fintrac) has imposed a C$177 million penaltyon Xeltox Enterprises, the operator of cryptocurrency platform Cryptomus, for extensive violations of anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.

According to Fintrac, Cryptomus failed to file suspicious transaction reports (STRs) over 1,000 times and neglected to report more than 1,500 transactions involving C$10,000 or more in virtual currency. Many of these unreported activities involved transactions that raised reasonable suspicion of links to child sexual abuse material trafficking, fraud, ransomware payments, and sanctions evasion.

The regulator also revealed that the company lacked a documented compliance framework, including written AML/CTF policies and risk assessments, which are mandatory for all financial and virtual asset service providers operating in Canada.

Sarah Paquet, Director and CEO of Fintrac, said the severity of the violations left the agency with no choice but to issue its largest enforcement action to date.

“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,” Paquet stated.

The record fine underscores Canada’s tightening regulatory oversight of cryptocurrency platforms as authorities move to curb illicit financial flows and strengthen integrity within the digital asset ecosystem.