- Cryptomus was fined C$177 million for failing to report suspicious transactions.
- The exchange violated Canadian sanctions by processing transfers linked to Iran and darknet markets.
- The penalty is part of a push to enforce stricter crypto regulations in Canada.
Cryptomus, a cryptocurrency exchange based in British Columbia, has been fined a record C$176.96 million (USD 126.2 million) by Canada’s Financial Transactions and Reports Analysis Center (FINTRAC). This penalty marks the largest fine ever issued by FINTRAC and is a direct result of the exchange’s failure to comply with anti-money laundering (AML) and sanctions regulations.
Suspicious Transactions Linked to Darknet and Sanctions Evasion
The fine was triggered by the inability of Cryptomus to report back thousands of suspicious transactions. In July 2024 alone, the exchange did not issue red flags on more than 1,000 transactions that were suspected of connection to money laundering and financing of terrorist organizations. These payments covered the darknet markets, fraud, ransomware money, and the sale of child sexual abuse material.
In addition, Cryptomus failed to disclose the existence of more than 7,500 transfers related to Iran, which is under serious sanctions imposed by Canada. The exchange illegally conducted these unreported transactions between July and December 2024, contrary to the sanctions law in Canada . Other compliance failures mentioned by FINTRAC included the absence of effective know-your-client (KYC) procedures. The regulator established that Cryptomus had a poor risk assessment and an unfinished compliance program.
This fact contributed to the failure of the company to detect and report large-value crypto transactions over C$10,000. Overall, 1,518 of these transactions were not reported in the period between July and December 2024. Cryptomus did not provide the required monitoring and did not even ensure that its platform corresponded to industry-standard AML requirements. Such negligence contributed to the engagement of the exchange in illicit activities associated with high-risk jurisdictions, such as Russia and Iran.
Contacts with High-Risk Crypto Markets
The activity of Cryptomus was also subject to criticism because of its relations with Garantex, a Russian cryptocurrency exchange that has since been shut down due to its alleged involvement in cybercrime and money laundering. From January 2024 to March 2025, according to analysis of TRM Labs, Cryptomus traded about USD 250 million of cryptocurrency with Garantex.
The exchange was also trading widely with Nobitex, an Iranian crypto platform that was also accused of helping to evade sanctions. These associations with high-risk markets also heightened concerns regarding the platform’s role in supporting illicit financial practices. The Cryptomus penalty is an extension of a wider crackdown on crypto exchanges that are not operated under adequate regulatory supervision in Canada. It is preceded by previous imposition of fines on other exchanges, such as KuCoin, fined C$19.5 million in July 2024, and Binance, fined C$6 million earlier this year.
The head of FINTRAC, Sarah Paquet, stressed that the case against Cryptomus points to the fact that crypto exchanges are vulnerable to exploitation by criminal actors, especially when compliance protocols are not enforced. The penalty also highlights the increased measures that Canada is taking to ensure that the cryptocurrency sector follows the same regulatory practices as conventional financial institutions.
