Canadian watchdog fines crypto firm Cryptomus C$177m

Editorial

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Xeltox Enterprises was fined after Fintrac found Cryptomus failed to submit suspicious transaction reports on more than 1000 occasions. It also did not report more than 1500 times in which it received $10,000 or more in virtual currency in the course of a single transaction.

The suspicious transaction reports that were not submitted included some where there were “reasonable grounds” to suspect that they were related to the laundering of proceeds connected to trafficking in child sexual abuse material, fraud, ransomware payments and sanctions evasion.

The company was also found to have failed to develop and apply written compliance policies and procedures, and to assess and document the risk of money laundering or a terrorist activity financing offence.

Explaining the size of the fine, Sarah Paquet, CEO, Fintrac, says: “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.”