Canada’s financial intelligence agency has given out its largest-ever fine to a cryptocurrency exchange, saying numerous violations involving transactions connected to child sexual abuse material and sanctions evasions led to the “unprecedented” $177 million fine.
Xeltox Enterprises Ltd., which operates the cryptocurrency platform Cryptomus, was handed a $176,960,190 fine on Oct. 16 for non-compliance with the Proceeds of Crime and Terrorist Financing Act and associated regulations. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said the B.C. company committed a total of six administrative violations.
“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,” said Sarah Paquet, director and CEO of FINTRAC, in an Oct. 22 release….