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Canada hits crypto dealer with record fine in crypto money-laundering case

28 Oct 2025

James Smith 28 Oct 2025

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Largest anti-money laundering penalty in Canada’s crypto sector
Highlights compliance risk for crypto-casino operators

Canada’s federal anti-money laundering regulator FINTRAC has announced that it has fined Xeltox Enterprises Limited (also known as Cryptomus) C$176.9 million (approximately US$126 million) for failing to file suspicious-transaction reports and facilitating virtual-currency transfers linked trafficking, ransomware and sanctions evasion.

The regulator stated that the company neglected to report receipts of over C$10,000 in virtual currency and failed to submit required filings despite “reasonable grounds to suspect” illicit flows.

The fine is the largest ever imposed by FINTRAC. This enforcement sits within a broader push by global authorities to tighten controls on crypto-asset flows.

The agency found over 1,000 instances where Cryptomus did not submit reports for July 2024 transactions involving known darknet markets and virtual currency wallets.

“We are committed to working with our domestic partners and international allies to protect the safety of Canadians and the security of Canada’s economy,” said FINTRAC Director and Chief Executive Officer Sarah Paquet.

The fine comes just weeks after FINTRAC imposed a C$19.6 million (US$14.1 million) penalty on Peken Global Limited, the operator of one of the world's largest cryptocurrency exchanges KuCoin.

KuCoin appealed last month's penalty - previously FINTRAC's highest ever - saying the fine was excessive and punitive.

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