Financial Transactions and Reporting Analysis Center of Canada (FINTRAC fined Cryptomus crypto exchange for 176.96 million Canadian dollars (about $126.2 million). The platform is accused of violating anti-money laundering regulations. This is the largest fine in the agency’s history.
Xeltox Enterprises, a company registered in the Canadian province of British Columbia, failed to report more than 1,000 suspicious transactions in July 2024, according to FINTRAC. These transactions may have been related to dark web platforms and addresses associated with child sexual abuse, fraud, ransom payments to ransomware creators, and violations of international sanctions.
According to FINTRAC, there were 7,557 transactions from Iran and 1,518 large transfers of more than CAD 10,000 (approximately $7,146) each from July to December 2024, which the exchange did not report to the regulator. Canadian officials also stated that Cryptomus lacks a customer identification (KYC) procedure and a risk assessment system.
According to Sarah Paquet, director of FINTRAC, the situation with Cryptomus proves that crypto companies can still be used by intruders for illegal purposes. Earlier this year, the British Columbia Securities Commission banned Cryptomus from trading any securities in the province.
In September, FINTRAC fined Peken Global, the parent company of the KuCoin crypto exchange, 19.6 million Canadian dollars (about $14.09 million). The reason is the same — the exchange did not report large suspicious transactions to the agency.
