Canada’s financial watchdog has levied a record $126 million (C$176.9 million) fine against crypto platform Cryptomus for widespread anti-money laundering (AML) violations. According to the Financial Transactions and Reports Analysis Centre (FINTRAC), the platform failed to report thousands of high-risk transactions linked to child exploitation, ransomware, and Iran-related activity.
Investigators uncovered 2,593 breaches, including 1,068 unfiled suspicious transaction reports and 1,518 unreported large-value crypto transfers in July 2024 alone. The agency also found that Cryptomus ignored a directive requiring enhanced scrutiny of Iran-linked activity, failing to report 7,557 related transactions between July and December 2024.
Operating under Xeltox Enterprises Ltd. in Vancouver, the company had no Canadian staff or office presence. FINTRAC traced its communications to Uzbekistan and Spain, calling its compliance framework “incomplete and inadequate.”
The fine is FINTRAC’s largest ever nearly nine times the $14 million penalty imposed on KuCoin’s operator last month. Earlier this year, Binance’s Canadian affiliate was also fined C$6 million for similar offenses. FINTRAC said such failures undermine transparency and expose Canada’s virtual currency sector to criminal exploitation.
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