The money-laundering watchdog alleges Xeltox Enterprises, which operates the Cryptomus crypto platform, failed to submit more than 1,000 suspicious transaction reports in the month of July in 2024, including in cases with reasonable grounds to suspect a connection with child sexual abuse material, fraud, ransomware payments and sanctions evasion. (The Logic)
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The money-laundering watchdog alleges Xeltox Enterprises, which operates the Cryptomus crypto platform, failed to submit more than 1,000 suspicious transaction reports in the month of July in 2024, including in cases with reasonable grounds to suspect a connection with child sexual abuse material, fraud, ransomware payments and sanctions evasion. (The Logic)
Talking point: The fine is almost nine times bigger than the $19.6-million penalty the Financial Transactions and Reports Analysis Centre (Fintrac) levied against crypto platform KuCoin in September, which was itself more than double the previous record of $9.2 million that Fintrac levied against TD Bank in 2024 for anti-money laundering failures. Fintrac has been on an enforcement spree over the past year, flexing its newly expanded powers to collect penalties. Security expert Brian Krebs and the Investigative Journalism Foundation have previously reported that Cryptomus is a payments processor of choice for Russian crypto exchanges and cybercrime. Xeltox did not respond to requests for comment.
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