November 19,2025
RED FM News Desk
A British Columbia–incorporated cryptocurrency company is challenging a $176-million fine imposed last month by Canada’s anti–money laundering agency.
In its Federal Court appeal, Xeltox Enterprises Ltd. argues that Fintrac’s findings under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act were based on legal errors. The company says Fintrac faulted it for failing to report suspicious transactions — including more than 7,500 linked to Iran — even though Xeltox claims it had no knowledge of or control over them.
According to the appeal, Xeltox licenses software from a Panama-based firm that owns the Cryptomus platform, and Fintrac wrongly treated the two as the same entity. Xeltox says it is registered with Fintrac as a money services business, but the alleged violations were actually committed by foreign users of the Cryptomus platform with no ties to Canada.
Fintrac’s director and CEO, Sarah Paquet, said last month that the case involved “numerous violations,” including links to child sexual abuse material, fraud, ransomware payments and sanctions evasion — factors that contributed to the record-setting penalty.
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