Reported by The Canadian Press

(Excerpt shared below. To read full report, go to: https://www.cbc.ca/news/business/cryptomus-fined-177-million-fintrac-9.6948338)

A cryptocurrency exchange has been slapped with a fine of almost $177 million — the largest-ever penalty by Canada’s financial intelligence agency — for infractions including failing to flag more than 1,000 transactions with suspected links to criminal activity.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced the penalty for Xeltox Enterprises Ltd. on Wednesday. The B.C.-incorporated business operates as Cryptomus and was previously known as Certa Payments Ltd.

The $176,960,190 fine eclipses the previous record — roughly $20 million — for a fine imposed by FINTRAC. That penalty was given to Peken Global Ltd, the operator of another cryptocurrency firm, KuCoin, in September.

“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,” director and CEO Sarah Paquet said in a statement about the Cryptomus penalty.

The agency found 1,068 instances where Cryptomus did not submit reports for July 2024 transactions involving known darknet markets and virtual currency wallets with ties to the criminal activity Paquet described.

Darknet markets are online and often anonymous platforms where illegal goods and services are sold. Virtual currencies also mask the identity of their holder, making both them and the darknet markets havens for criminal activity.