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Cyber Risks · Krebs on Security

Canada Fines Cybercrime Friendly Cryptomus $176M

Summary: Canada's FINTRAC imposed a $176,960,190 penalty on Xeltox Enterprises Ltd., the parent of cryptocurrency payments platform Cryptomus, on October 16 for failing to submit suspicious transaction reports tied to child sexual abuse material trafficking, fraud, ransomware payments and sanctions evasion. Earlier research by investigator Richard Sanders found 122 cybercrime services and at least 56 cryptocurrency exchanges processing transactions through Cryptomus, and reporters documented its Vancouver address as the listed home of at least 76 foreign currency dealers, eight money service businesses and six crypto exchanges that were not physically located there.

What you should know: FINTRAC's director called this an unprecedented enforcement action, yet the fine is roughly seven times the total of the 23 penalties the agency issued last year, and the investigator who tracked the 122 services using Cryptomus said the amount will simply become a cost of doing business.

Read the original at Krebs on Security ↗

Topics
Data Breaches
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