The US Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed banning Cambodia’s Huione Group from accessing the American financial system, according to a May 1 statement.
If approved, the proposed rule would prohibit US financial institutions from opening or maintaining accounts for Huione Group or any of its subsidiaries.
US authorities identified Huione Group as a major player in moving illicit funds linked to both North Korea and transnational crime rings in Southeast Asia. The group reportedly helped funnel proceeds from crypto scams such as fake investment schemes, often called “pig butchering” frauds.
Treasury Secretary Scott Bessent explained that the proposed move was necessary to dismantle Huione’s access to global banking services and weaken its ability to launder stolen funds.
He said:
“Huione Group has established itself as the marketplace of choice for malicious cyber actors like the DPRK and criminal syndicates, who have stolen billions of dollars from everyday Americans. Today’s proposed action will sever Huione Group’s access to correspondent banking, degrading these groups’ ability to launder their ill-gotten gains.”
Over $4 billion laundered
FinCEN’s investigation claims that Huione Group processed over $4 billion in suspicious transactions between August 2021 and January 2025.
Of this amount, at least $37 million reportedly came from North Korean-linked hacks, $36 million from crypto investment scams, and nearly $300 million from other online frauds.
US authorities believe the group operates a network of companies that serve different roles in its laundering operations.
These include Huione Pay, a fiat payment processor; Huione Crypto, a virtual asset service; and Haowang Guarantee, a marketplace dealing in illegal goods and services. The network has even issued its stablecoin to support transactions across these platforms.
Despite public evidence of widespread abuse, Huione entities lacked visible anti-money laundering (AML) and know-your-customer (KYC) policies. FinCEN noted that Huione failed to detect suspicious transactions, including one instance where it unknowingly received funds tied to a North Korean cyberattack.
The platform appears to operate outside typical oversight or regulations, similar to historical darknet marketplaces like Silk Road.
Credit: Source link
