United States Takes Action to Prevent Huione Group of Cambodia from Engaging in Cryptocurrency-Linked Financial Fraudulent Activities
Busting Huione Group: US Cracks Down on Cambodia's Notorious Crypto Laundering Network
Wanna know the lowdown on the trouble brewing in the crypto world? The US Treasury's Financial Crimes Enforcement Network (FinCEN) is taking a firm stand against Huione Group, a shady Cambodia-based financial entity known for enabling North Korean hackers and major crypto scams like pig butchering.
FinCEN's recently dropped a bomb with a proposed ban on financial institutions working with Huione, aiming to block illicit crypto flows.
FinCEN Takes Assertive Action
FinCEN just dropped a dime, by publishing a notice of proposed rulemaking under Section 311 of the USA PATRIOT Act on May 1, 2025. The action targets Huione Group, designating it as a leading money laundering concern. This move empowers the US to deny Huione access to payable-through and correspondent accounts within the US, isolating them from global banking systems.
According to FinCEN's investigations, Huione Group laundered an astonishing $4 billion in illicit funds between August 2021 and January 2025. Here's a low-down:
- $37 million in crypto assets from North Korean cyber heists
- $36 million from crypto investment scams
- $300 million from other cyber-related fraud schemes
Are you foggy about the Section 311 designation? Think of it as a tool to block financial entities that act as conduits for money laundering activities, especially those posing threats to the US financial system.
How Huione Empowers Cybercrime
Huione isn't just a run-of-the-mill operation—it's a finely-tuned machine designed for laundering digital assets. FinCEN's findings reveal a network composed of four main components:
- Huione Pay PLC - a fiat and crypto payment platform
- Huione Crypto - a virtual asset service provider (VASP)
- Haowang Guarantee - an online marketplace offering tools and services tailored for cyber scams
- Unnamed DeFi platforms - decentralized finance platforms controlled by Huione
Together, these entities provide end-to-end services for criminals seeking to clean their crypto.
The North Korean Connection
FinCEN links Huione Group to North Korea's infamous Lazarus Group, accused of stealing billions in cryptocurrency to fund the DPRK's weapons and cyber programs. Findings show Huione received over $150,000 in crypto from a wallet associated with Lazarus as recently as last year. No wonder authorities find it alarming!
Stablecoin and Regulatory Evasion
In a development that complicates matters further, Huione has launched its own stablecoin. FinCEN notes that the stablecoin's usage remains opaque, likely enabling faster and more anonymous laundering of proceeds across borders.
Now, you might wonder, why is this a concern? Well, Huione's services lack basic regulatory safeguards. None of its components has either implemented or published anti-money laundering (AML) or know your customer (KYC) protocols. How about that for an open invitation to crime?
The Future of Crypto and Enforcement
This proposed action sets a powerful precedent, heralding growing US efforts to clamp down on cryptocurrency's abuse by state-sponsored actors and criminal syndicates. It signals a more aggressive stance in leveraging Section 311 powers against digital asset platforms.
If finalized, the rule will mean US banks can't engage in any relationship whatsoever with Huione, including deals mediated by intermediaries. This could also prompt other countries to take similar action, amplifying Huione's financial isolation.
For crypto investors and institutions, the message is loud and clear: regulatory agencies are no longer treating crypto-specific crimes as harmless nuisances—they're serious about prevention. Any entity that facilitates crypto laundering risks being cut off from global financial networks.
Ready for the Next Round?
FinCEN's proposal is currently up for public debate. If passed, it would mark one of the broadest crypto enforcement actions since the shutdown of mixers like Tornado Cash and Blender.io. While Huione's primary user base may be beyond US jurisdiction, their reliance on US dollar liquidity and international correspondent banking leaves them vulnerable.
Ultimately, this move is about more than just Huione—it's a signal that a more proactive, preemptive approach to crypto regulation is coming, especially where digital assets intersect with geopolitical threats and vast-scale fraud. So, buckle up—the crypto wild west ride is far from over!
- FinCEN has issued a notice of proposed rulemaking under Section 311 of the USA PATRIOT Act, targeting Huione Group as a leading money laundering concern.
- FinCEN's action aims to block illicit crypto flows by denying Huione access to US financial institutions, isolating them from global banking systems.
- Huione is linked to North Korea's Lazarus Group, accused of stealing billions in cryptocurrency. Investigations show Huione received over $150,000 in crypto from a wallet associated with Lazarus.
- Huione operates a network of four main components, including Huione Pay PLC, Huione Crypto, Haowang Guarantee, and unnamed DeFi platforms, all designed to launder digital assets.
- FinCEN's proposed rule, if passed, would mark one of the broadest crypto enforcement actions since the shutdown of mixers like Tornado Cash and Blender.io.
- Huione's services lack basic regulatory safeguards, such as anti-money laundering (AML) or know your customer (KYC) protocols.
- If finalized, US banks would be prohibited from engaging in any relationship with Huione, including deals mediated by intermediaries.
- This move sets a powerful precedent for increasing US efforts to combat cryptocurrency's abuse by state-sponsored actors and criminal syndicates.
- For crypto investors and institutions, the message is clear: regulatory agencies are serious about preventing crypto laundering, and any entity that facilitates it risks being cut off from global financial networks.
