The US Treasury Department is taking significant steps to cut off the Cambodia-based Huione Group from accessing the US banking system. This decisive action comes as the Treasury accuses Huione of playing a pivotal role in facilitating money laundering operations for North Korea’s notorious Lazarus Group, known for its state-backed cybercrime activities.
On May 1, the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed measures to prohibit US financial institutions from opening or maintaining accounts for the Huione Group. US Treasury Secretary Scott Bessent highlighted in his statement that Huione Group has positioned itself as a “marketplace of choice for malicious cyber actors,” contributing to the theft of billions from American citizens.
“Today’s proposed action will sever Huione Group’s access to correspondent banking, degrading these groups’ ability to launder their ill-gotten gains.”
Huione Group operates a diverse network of businesses, including the payment service platform Huione Pay PLC and the crypto exchange Huione Crypto. It also operates Haowang Guarantee, an online marketplace that has garnered attention for providing illicit goods and services.
While Huione Group does not maintain correspondent accounts directly with US banks, it possesses accounts with foreign entities that do hold such accounts in the US, as noted by FinCEN. The proposed rule will undergo a 30-day public comment period before finalization.
Expansion into a Sophisticated Cybercrime Network
According to FinCEN’s assessment, Huione Group has laundered approximately $4 billion in illicit proceeds between August 2021 and January 2025, which notably includes over $36 million stemming from crypto scams, particularly the so-called “pig butchering” scams.
Furthermore, around $37 million of the laundered funds has been traced back to North Korea’s cyber heists, underscoring the interconnections between Huione and state-sponsored criminal activities.
Haowang Guarantee effectively serves as a “one-stop shop” for criminals, facilitating the laundering of cryptocurrencies obtained through unlawful means and converting these funds into fiat currency. Additionally, the conglomerate has launched a US dollar-pegged stablecoin named the US Dollar Huione (USDH), which is highlighted by FinCEN as being challenging to freeze and thus advantageous for money laundering pursuits.
It is also noteworthy that the National Bank of Cambodia has prohibited payment firms from engaging with or trading digital assets in the region, leading to the revocation of Huione’s local banking license earlier in March.
As the developments continue to unfold, the broader implications for cryptocurrency regulation in relation to illicit activities become increasingly evident, showcasing the ongoing challenges faced by regulators globally.
