Lessons From the RCMP Seizure - Largest in Canadian History (Sept 2025)
On September 18, 2025, law enforcement in Canada achieved what is now the country’s largest seizure of cryptocurrency, estimated at over $56 million, in a case that exposed a number of failures basic to anti-money laundering obligations. The exchange wasn’t registered with FINTRAC as a Money Services Business, didn’t identify its clients, and by permitting anonymous accounts harbored activity believed to stem from criminal sources. That case is a warning shot: firms in the crypto space cannot assume gaps will go unnoticed, and established regulatory frameworks are being enforced.
What FINTRAC Demands: Many Crypto Platforms Are Falling Short
Canadian laws already require crypto exchanges and virtual asset service providers (VASPs) to register with FINTRAC, implement thorough Know Your Client (KYC) practices, and report large virtual currency transactions. For example, under FINTRAC’s guidance, a single receipt of crypto valued at CAD $10,000 or more, or aggregated virtual currency receipts totaling that amount over 24 hours, triggers a “Large Virtual Currency Transaction Report” (LVCTR).
Another pillar is identity verification: FINTRAC’s methods guidance mandates appropriate documentary and non-documentary methods to confirm who your clients are (whether individuals or entities), and details what counts as acceptable forms of ID. Crypto platforms that allow anonymous or pseudonymous access, or that don’t maintain strong client-identity records, are exposed to enforcement, seizure, reputational damage, and possibly criminal penalties.
How Licensed Crypto Investigation Expertise Makes a Difference
Complying with AML obligations isn’t just about ticking boxes, it demands high technical proficiency. That’s where Platino Consulting’s expertise in crypto investigations, such as our certified crypto tracing experts, come in. They bring skills in blockchain analysis (transaction tracing, wallet attribution), forensic accounting, detection of obfuscation techniques (mixers, tumblers, chain-hopping), and best practices in incident response. These are exactly the tools needed to withstand scrutiny from regulators like FINTRAC or law enforcement investigations like the RCMP case.
How Your Platform Can Build a Defensible AML Program Today
If you manage or are launching a crypto business, here are several proactive steps your platform should take and how Platino Consulting can assist:
Ensure FINTRAC registration (if applicable). If your platform deals in virtual currencies, check whether you qualify as a reporting entity, and if so, make sure registration is up-to-date and in good standing.
Strengthen KYC & client verification processes. Implement reliable identification methods, maintain detailed documentation, perform ongoing due diligence, and verify beneficial ownership for corporate clients.
Deploy monitoring & reporting. Build or refine transaction monitoring systems to flag large virtual currency transactions and other indicators of suspicious behaviour. Ensure you have automated and manual review workflows.
Maintain incident readiness. In the event of seizures, regulatory investigations or breaches, having clear policies, forensic readiness, and expert advisory support can drastically reduce exposure and cost.
Why Choose Platino Consulting
Selecting a consulting partner that has certified experts in cryptocurrency investigations, has demonstrable experience with blockchain forensic tools, has worked with regulators and understands how to craft defensible reports, is not optional, it is essential. Firms that lean on generic compliance guidance alone often find themselves exposed when regulators demand depth, audit trails, and proof of due diligence comparable to what was lacking in the case of the recent seizure.
If you want to ensure your crypto company is resilient, registered, compliant, well-monitored, and ready for regulatory or investigative scrutiny, expert support can make all the difference. Platino Consulting’s team of certified investigators, forensic accounting specialists, and blockchain risk analysts help platforms close gaps fast, respond to audits, build sustainable AML programs, and remain operational amidst increasing regulatory pressure. Contact us today to book your consultation.
