Canada's Financial Transactions and Reports Analysis Centre (FINTRAC) has levied a historic $126 million (C$176.96 million) fine against Cryptomus, operated by Vancouver-based Xeltox Enterprises Ltd., for severe anti-money laundering (AML) compliance failures. The penalty, issued on October 16, 2025, stems from the platform's failure to report 1,518 large virtual currency transactions within a single month, each meeting or exceeding Canada's C$10,000 reporting threshold. These unreported transactions were linked to serious crimes, including fraud, child exploitation material, ransomware, and sanctions evasion.
FINTRAC described the non-compliance as "severe" and unprecedented, noting that Cryptomus lacked a functional monitoring system. Additionally, between July and December 2024, the firm processed 7,557 transactions originating from Iran without reporting any, violating a specific Ministerial Directive and raising concerns about sanctions evasion. FINTRAC CEO Sarah Paquet stated, "Given the nature and extent of the violations, this action was necessary," emphasizing the connection to illicit activities like trafficking in child sexual abuse material.
This is not Cryptomus's first regulatory issue; the B.C. Securities Commission banned the firm from trading securities in May 2024. The fine surpasses Canada's previous largest crypto penalty—a C$20 million fine against KuCoin operator Peken Global Ltd. in 2023—by nearly nine times, signaling a stricter regulatory approach and heightened enforcement in the digital asset sector.
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