Canada’s anti-money laundering regulator has imposed a record administrative monetary penalty of C$176.96 million ($130 million) on Xeltox Enterprises Ltd., the operator of cryptocurrency platform Cryptomus, for “egregious and systemic” violations of the country’s financial crime laws.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said that Xeltox, incorporated in British Columbia and previously known as Certa Payments Ltd., repeatedly failed to comply with reporting and compliance obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Between July 1 and July 31, 2024, the firm allegedly failed to submit 1,068 suspicious transaction reports and 1,518 reports on virtual currency transactions of C$10,000 or more.
It also neglected to follow a ministerial directive, maintain up-to-date compliance policies, and properly assess the risks of money laundering and terrorist financing in its operations.
FINTRAC said its review linked several unreported transactions to the laundering of proceeds from child sexual abuse material, fraud, ransomware attacks, and sanctions evasion.
The watchdog called the case “unprecedented” in scale and seriousness.
“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,” said FINTRAC Director and Chief Executive Officer Sarah Paquet. She added:
We are committed to protecting the safety of Canadians and the integrity of our financial system.
The fine against Cryptomus underscores growing scrutiny of virtual currency platforms as regulators worldwide move to tighten controls against illicit activity.
FINTRAC warned that weak compliance frameworks in the digital asset sector pose serious threats to transparency and accountability.
The agency noted that the goal of administrative penalties is to correct non-compliant behaviour, not to punish.
Since gaining its enforcement authority in 2008, FINTRAC has imposed more than 150 penalties across business sectors. In fiscal 2024–25 alone, it issued 23 notices of violation totalling more than C$25 million, the highest number in a single year.
