B.C.-incorporated cryptocurrency firm appeals record $176 million Fintrac penalty

TORONTO — A cryptocurrency firm incorporated in British Columbia is appealing a $176 million penalty issued by Canada’s anti-money-laundering agency last month.

Xeltox Enterprises Ltd. says in an appeal filed in Federal Court that Fintrac’s penalties for violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act were based on “errors of law.”

The company says Fintrac found the company in violation for failing to report suspicious transactions, including more than 7,500 with connections to Iran, over which Xeltox claims it had “no knowledge or control.”

The appeal says Xeltox licenses its software from a Panama-based company that owns the Crytomus platform, and Fintrac “misapprehended” them as the same entity.

Xeltox Enterprises says it’s registered with Fintrac as a money services business under the act, and the alleged violations were committed by “foreign licensees” of the Cryptomus platform with no connection to Canada.

Fintrac director and CEO Sarah Paquet said in a statement last month that “numerous violations” in the case involved child sexual abuse material, fraud, ransomware payments and sanctions evasion, leading to the record penalty issued against the firm.

This report by The Canadian Press was first published Nov. 19, 2025.