News Summary

Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) has imposed a record-setting fine of nearly $177 million on Vancouver-based crypto exchange Xeltox Enterprises, operating as Cryptomus. The penalty is the largest in FINTRAC’s history and results from approximately 2,600 violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. These violations included failing to submit over 1,000 suspicious transaction reports linked to sites of criminal activity and neglecting to report large cryptocurrency transactions totaling $10,000 or more on over 1,500 occasions. FINTRAC highlighted that many violations were connected to severe criminal activities such as trafficking in child sexual abuse material, fraud, and sanctions evasion. Despite being incorporated in British Columbia, representatives of Xeltox from Uzbekistan and Spain claimed the company had no employees in Canada. The fine underscores FINTRAC’s efforts to combat money laundering and terrorist financing risks within Canada’s growing virtual currency sector.