Canadian financial authorities have levied the largest fine in history on a crypto platform, imposing $126.4 million on Xeltox Enterprises Ltd, operating under the brand Cryptomus, for multiple violations of anti-money laundering (AML) regulations.
According to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Cryptomus failed to report over 1,000 suspicious transactions and neglected to flag 1,518 large virtual currency operations exceeding $10,000 during 2024.
FINTRAC’s investigation also linked the platform to serious criminal activity, including child exploitation, fraud, ransomware payments, and sanctions evasion.
“Due to the severity and criminal nature of these violations, FINTRAC had no choice but to take unprecedented action,” said FINTRAC CEO Sara Pake.
This penalty is not only the largest in FINTRAC’s history, but also one of the harshest regulatory actions taken against any participant in Canada’s cryptocurrency sector. Cryptomus, formerly known as Certa Payments Ltd, systematically breached federal AML and counter-terrorism financing laws by:
- Failing to report over 1,000 suspicious transactions.
- Ignoring mandatory reporting of large virtual currency operations.
- Not updating compliance policies or conducting proper risk assessments.
- Overlooking ministerial directives and failing to notify authorities of operational changes.
FINTRAC emphasized that such violations undermine transparency and accountability in the crypto sector, creating opportunities for criminal exploitation.
The agency noted that while Canadian regulators issued 23 violation notices in 2024–2025, with over $25 million in fines across the sector, the Cryptomus case stands out due to its scale and societal impact.
“The rapid growth of virtual assets comes with rising risks of money laundering, terrorism financing, and sanctions evasion. Strong compliance procedures are essential to protect Canada’s financial system,” Pake added.
This latest sanction adds to a series of regulatory interventions in Canada’s crypto market. In May 2024, FINTRAC fined Binance $4.4 million for operating without registration and violating AML rules. In September 2025, the Royal Canadian Mounted Police seized $56 million in crypto from TradeOgre, marking the largest crypto seizure in Canadian history.
The Cryptomus fine serves as a stark warning to all crypto operators: regulatory compliance is no longer optional in Canada’s rapidly evolving digital asset landscape.
