FINTRAC Fines Cryptomus $177 Million — Canada’s Largest Ever AML Penalty

A Canadian cryptocurrency exchange has been hit with a record-breaking fine of nearly $177 million for multiple anti–money laundering violations, including failing to report over 1,000 suspicious transactions tied to criminal activity.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced the penalty against Xeltox Enterprises Ltd., a B.C.-based company operating under the name Cryptomus, formerly known as Certa Payments Ltd.

The $176.9 million fine dwarfs the previous record — roughly $20 million — issued in September against Peken Global Ltd., operator of another crypto platform, KuCoin.

FINTRAC Director and CEO Sarah Paquet said the unprecedented enforcement action was necessary because many of the violations involved child exploitation materials, fraud, ransomware payments, and sanctions evasion.

Widespread Compliance Failures

The agency found 1,068 transactions in July 2024 that Cryptomus failed to flag despite clear links to darknet marketplaces and wallets associated with criminal networks.

Darknet markets — online hubs for anonymous illegal trade — and virtual currencies’ anonymity together create ideal environments for illicit financial flows.

FINTRAC also said 7,557 transactions originating from Iran between July and December 2024 went unreported.
Under ministerial directives concerning Iranian-related financial activity, Cryptomus was required to treat these as high-risk, verify counterparties’ identities, conduct due diligence, maintain records, and report to FINTRAC. The company failed to meet any of these obligations.

Additionally, regulators identified 1,518 large-value crypto transfers exceeding $10,000 in July 2024 that were not reported. FINTRAC cited “incomplete and inadequate internal procedures” that weakened its ongoing monitoring and know-your-client (KYC) controls.

Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, all financial entities — including banks, real estate brokers, and casinos — must maintain compliance systems, identify clients, and report qualifying transactions.

Regulatory Crackdown Intensifies

This fine marks another setback for Cryptomus, which was temporarily banned by the B.C. Securities Commission in May 2024 from trading securities or engaging in other capital market activities.

In fiscal year 2024–2025, FINTRAC issued 23 violation notices, the highest number in its history, totaling more than $25 million in penalties.
Since receiving the authority to impose administrative monetary penalties in 2008, the agency has levied over 150 fines.