Canada's financial intelligence agency has imposed a record $176.9 million fine on cryptocurrency exchange Cryptomus for failing to report suspicious transactions linked to criminal activities. The penalty, announced on October 16, 2025, targets violations including unreported dealings with darknet markets and Iranian transactions. This marks the largest enforcement action by FINTRAC to date.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) levied a $176,960,190 penalty on Xeltox Enterprises Ltd., which operates as Cryptomus and is incorporated in British Columbia. Previously known as Certa Payments Ltd., the firm was found to have violated anti-money laundering laws under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
FINTRAC identified 1,068 instances in July 2024 where Cryptomus failed to submit suspicious transaction reports for activities involving known darknet markets and virtual currency wallets tied to trafficking in child sexual abuse material, fraud, ransomware payments, and sanctions evasion. Darknet markets serve as anonymous platforms for illegal goods and services, while virtual currencies obscure user identities, facilitating criminal operations.
Additionally, the agency noted 7,557 unreported transactions originating from Iran between July 1 and December 31, 2024. These required heightened scrutiny due to ministerial directives on high-risk financial links to the Islamic Republic, including identity verification, due diligence, record-keeping, and reporting—none of which Cryptomus fulfilled. In July 2024 alone, 1,518 transactions exceeding the $10,000 threshold for large virtual currency transfers also went unreported.
"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 Sarah Paquet, FINTRAC's director and CEO.
Cryptomus also maintained incomplete policies for ongoing monitoring and know-your-client obligations. This fine surpasses the previous record of about $20 million imposed on KuCoin operator Peken Global Ltd. in September 2024. In May 2025, the B.C. Securities Commission banned the firm from trading securities.
Research highlighted Cryptomus's role in supporting over 120 cybercrime services and 56 Russian-focused cryptocurrency exchanges, many processing funds to sanctioned banks. Blockchain analyst Richard Sanders noted the fine as significant but potentially just a 'cost of doing business' for such entities. FINTRAC issued 23 violation notices in 2024-25, totaling over $25 million—the highest annual figure since gaining penalty authority in 2008.
The case underscores broader issues with money service businesses registered in Canada but operating remotely, often at shared Vancouver addresses without physical presence, as documented in prior investigations.