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Canada Fines Cryptomus a Record C$176.96 Million for AML Violations

The unprecedented penalty signals a sharper crackdown on crypto AML failures tied to serious crimes.

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Canada's financial intelligence agency says it has imposed an administrative penalty of $2.46 million against Exchange Bank of Canada for non-compliance with money laundering rules. Bank towers are shown from Bay Street in Toronto's financial district, on Wednesday, June 16, 2010. THE CANADIAN PRESS/Adrien Veczan
Canada’s fintrac slaps cryptomus with landmark $126m fine
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Overview

  • FINTRAC said Xeltox Enterprises Ltd. (operating as Cryptomus) failed to file 1,068 suspicious transaction reports in July 2024 tied to child sexual abuse material, fraud, ransomware and sanctions evasion.
  • The regulator also found 1,518 unreported large virtual‑currency receipts of C$10,000 or more during the same month.
  • Investigators cited 7,557 Iran‑origin transfers between July and December 2024 that were not reported as required under a ministerial directive.
  • FINTRAC described inadequate policies, risk assessments and KYC monitoring, noting a rented Vancouver mailbox, no Canadian staff, and examination communications traced to Uzbekistan and Spain.
  • The sanction far exceeds last month’s near‑C$20 million penalty against KuCoin’s operator and follows earlier B.C. Securities Commission restrictions on Cryptomus, pointing to intensifying crypto enforcement in Canada.