{"id":54686,"date":"2025-10-24T14:34:06","date_gmt":"2025-10-24T14:34:06","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=54686"},"modified":"2025-10-24T14:34:06","modified_gmt":"2025-10-24T14:34:06","slug":"canada-crypto-crackdown-126m-fine-thrown-at-cryptomus-after-2593-aml-breaches","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=54686","title":{"rendered":"Canada Crypto Crackdown: $126M Fine Thrown At Cryptomus After 2,593 AML Breaches"},"content":{"rendered":"<div>\n<p>Canada has fined Cryptomus an eye-watering $126 million for breaking the country\u2019s anti-money laundering rules. Cryptomus, officially registered as Xeltox Enterprises Ltd and based in Vancouver, reportedly failed to report thousands of suspicious transactions, including ones potentially linked to serious crimes such as child exploitation, ransomware, and sanctions evasion.<\/p>\n<p>In July 2024 alone, Cryptomus chose not to report over 1,000 instances of suspicious activity and more than 1,500 reports on large crypto transactions.<\/p>\n<p>Canada\u2019s financial watchdog, Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), <a class=\"general-link\" href=\"https:\/\/fintrac-canafe.canada.ca\/pen\/amps\/pen-2025-10-22-eng\" target=\"_blank\" rel=\"noopener nofollow\">announced <\/a>the penalty on 22 October 2025 and said that the company\u2019s lack of reporting posed a serious risk to Canada\u2019s financial system.<\/p>\n<p>This is the biggest fine that FINTRAC has ever imposed on a single company. The $126 million penalty is almost nine times larger than the <a class=\"general-link\" href=\"https:\/\/www.reuters.com\/legal\/government\/canadas-anti-money-laundering-agency-fines-crypto-exchange-kucoin-parent-2025-09-25\/#:~:text=TORONTO%2C%20Sept%2025%20(Reuters),the%20agency%20said%20on%20Thursday.\" target=\"_blank\" rel=\"noopener nofollow\">$14 million fine<\/a> that KuCoin got last month.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/16.0.1\/72x72\/1f5e1.png\" alt=\"\ud83d\udde1\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> Is crypto regulation killing innovation? Despite $126M fines like Canada&#8217;s Xeltox crackdown, compliant projects see 30% higher adoption (BlackRock data)! \u2192 Resist, lose the Web3 race. <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/16.0.1\/72x72\/1f6a8.png\" alt=\"\ud83d\udea8\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/16.0.1\/72x72\/1fa99.png\" alt=\"\ud83e\ude99\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> Will Ethereum&#8217;s &#8216;auto-compliance&#8217; smart contracts make regulators obsolete? <a href=\"https:\/\/twitter.com\/hashtag\/Cry?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">#Cry<\/a> <a href=\"https:\/\/t.co\/jGCNESVz1h\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/jGCNESVz1h<\/a><\/p>\n<p>\u2014 TrackerAI (@TrackerAI) <a href=\"https:\/\/twitter.com\/TrackerAI\/status\/1981017525963120757?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">October 22, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Back in May, Binance\u2019s Canadian branch was also <a class=\"general-link\" href=\"https:\/\/fintrac-canafe.canada.ca\/pen\/amps\/pen-2024-05-09-eng\" target=\"_blank\" rel=\"noopener nofollow\">fined <\/a>$4.28 million for similar issues.<\/p>\n<p>In both the cases, the companies failed to register properly and didn\u2019t report big or suspicious crypto transactions, a key requirement by law to help prevent money laundering.<\/p>\n<p><strong>EXPLORE:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-1000x-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">Next 1000X Crypto \u2013 Here\u2019s 10+ Crypto Tokens That Can Hit 1000x This Year<\/a><\/strong><\/p>\n<h2>Cryptomus Hid Child Abuse And Iran-Linked Transactions<\/h2>\n<p>The Canadian financial watchdog iterated that investigators found Cryptomus to have hidden transactions linked to child abuse material, ransomware, fraud and transfers involving Iran. FINTRAC highlighted in a separate <a class=\"general-link\" href=\"https:\/\/fintrac-canafe.canada.ca\/new-neuf\/nr\/2025-10-22-eng\" target=\"_blank\" rel=\"noopener nofollow\">statement <\/a>that the country\u2019s crypto sector has serious weaknesses, which makes it easier for criminals to take advantage.<\/p>\n<p>Vulnerabilities in Canada\u2019s crypto sector, \u201csignificantly impair transparency and accountability and make the sector as a whole susceptible to exploitation by illicit actors,\u201d FINTRAC noted.<\/p>\n<p>FINTRAC called the company\u2019s internal system as being \u201cincomplete and inadequate.\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Cryptomus Fined C$176.96 M by FINTRAC in Landmark AML Case<\/p>\n<p>Canada\u2019s financial intelligence agency FINTRAC has fined Xeltox Enterprises Ltd. (Cryptomus) a record C$176.96 million (\u2248 US $126 million) for extensive anti-money-laundering breaches tied to child exploitation,\u2026 <a href=\"https:\/\/t.co\/zFVFwkmPc0\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/zFVFwkmPc0<\/a><\/p>\n<p>\u2014 Times of Blockchain (@TimesOfBlockC_) <a href=\"https:\/\/twitter.com\/TimesOfBlockC_\/status\/1981534775686156369?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">October 24, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Additionally, the company also failed to follow a <a class=\"general-link\" href=\"https:\/\/fintrac-canafe.canada.ca\/obligations\/dir-iri-eng\" target=\"_blank\" rel=\"noopener nofollow\">government order<\/a> requiring extra checks on Iran-related transactions, skipping extra scrutiny of more than 7,557 transactions between July and December 2024.<\/p>\n<p>The financial watchdog also found that the company\u2019s listed Vancouver address was just a rented mailbox. There were no staff or offices in Canada and all communications during the investigation came from either Uzbekistan or Spain.<\/p>\n<p><strong>EXPLORE:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/crypto-presales\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">The 12+ Hottest Crypto Presales to Buy Right Now<\/a><\/strong><\/p>\n<h2>Cryptomus Moved $250M In Crypto Through Sanctioned Exchange Garantex<\/h2>\n<p>During the investigations, it was revealed that Cryptomus had moved around $250 million in crypto through Garantex, a sanctioned Russian exchange accused by the US of helping criminals launder money.<\/p>\n<p>Analysts from the research firm TRM Labs <a class=\"general-link\" href=\"https:\/\/thetyee.ca\/News\/2025\/10\/22\/Vancouver-Crypto-Exchange-Fined\/\" target=\"_blank\" rel=\"noopener nofollow\">told investigators<\/a> that Cryptomus also had ties to Nobitex, an Iranian exchange, and had interacted with several cybercrime groups based out of Russia. It further confirmed that it had witnessed direct transactions between Cryptomus and known criminal networks.<\/p>\n<p>The company\u2019s founder, is a certain Sanjar Berdiev from Uzbekistan. A Kazakh patent lawyer named Kakhanova Renata Andreyevna filed for the company\u2019s Canadian trademark license. She has also filed for a trademark license for another company named Xeltox in both the UK and Australia.<\/p>\n<p>FINTRAC said Cryptomus gave them outdated contact details, including a phone number that is not linked to the company and an email address that no longer works.<\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h2 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h2>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Canada fined Cryptomus $126M for failing to report 2,593 suspicious crypto transactions    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        FINTRAC found links to child abuse, ransomware, and Iran-related transfers in unreported activity    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Cryptomus moved $250 million for sanctioned Russian exchange, Garantex    <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/altcoins\/canada-crypto-crackdown-126m-fine-thrown-at-cryptomus-after-2593-aml-breaches\/\">Canada Crypto Crackdown: $126M Fine Thrown At Cryptomus After 2,593 AML Breaches<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Canada has fined Cryptomus an eye-watering $126 million for breaking the country\u2019s anti-money laundering rules. Cryptomus, officially registered as Xeltox Enterprises Ltd and based in Vancouver, reportedly failed to report thousands of suspicious transactions, including ones potentially linked to serious crimes such as child exploitation, ransomware, and sanctions evasion. In July 2024 alone, Cryptomus chose [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-54686","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/54686","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54686"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/54686\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}