The Canadian Financial Intelligence Agency (FINTRAC) has fined 126 million USD against the cryptocurrency platform Cryptomus (Xeltox Enterprises Ltd.) for serious violations of anti-money laundering regulations. The company failed to report over 1,000 suspicious transactions and 1,500 high-value cryptocurrency transactions just in July 2024, related to child exploitation, ransomware, and evasion of sanctions.
FINTRAC reported that these violations conceal illegal activities and indicate a “lack of compliance and weaknesses” in the system. The investigation found 2,593 violations, including the failure to monitor transactions related to Iran — 7,557 transactions that were not verified or reported. The headquarters in Vancouver is merely a mail drop, with all operations conducted from Uzbekistan and Spain, with no staff in Canada. FINTRAC warns that this vulnerability makes the cryptocurrency sector susceptible to criminal exploitation.
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