Canada Imposes Historic $126M Penalty on Cryptomus for Money Laundering Offenses

Record Penalty Imposed: Canada's financial intelligence agency, FINTRAC, has fined the cryptocurrency platform Cryptomus C$176.96 million ($126 million) for failing to report thousands of suspicious transactions linked to serious criminal activities, marking the largest penalty in the agency's history.

Systemic Compliance Failures: The investigation revealed that Cryptomus exhibited a systemic disregard for anti-money laundering regulations, failing to report over 1,000 suspicious transactions and 1,518 large transactions, as well as numerous transactions from Iran, raising national security concerns.

Links to Cybercrime: Cryptomus has been identified as a payment processor for numerous Russian cybercrime services, facilitating money laundering and other illicit activities, with evidence showing its involvement in transactions related to ransomware, fraud, and darknet markets.

Escalating Regulatory Actions: The significant fine reflects a broader trend of increased enforcement by Canadian regulators against cryptocurrency platforms, emphasizing the need for compliance with the same standards as traditional financial institutions, especially ahead of an upcoming audit by the Financial Action Task Force.