US Treasury moves to cut off Huione over $4B crypto laundering

The US Treasury Department has proposed blocking the Cambodia-based Huione Group from accessing the US banking system, accusing it of laundering at least $4 billion in illicit crypto proceeds between August 2021 and January 2025.

The Treasury’s Financial Crimes Enforcement Network (FinCEN) announced on May 1 that it intends to prohibit US financial institutions from opening or maintaining correspondent or payable-through accounts for or on behalf of Huione Group.

US Treasury Secretary Scott Bessent described Huione as the “marketplace of choice for malicious cyber actors” like North Korea’s Lazarus Group, which has stolen 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,” Bessent said.

Huione operates a network of businesses, including payment platform Huione Pay PLC, crypto exchange Huione Crypto, and Haowang Guarantee, an online marketplace facilitating illicit goods and services.

While Huione does not hold direct correspondent accounts with US banks, it maintains accounts with foreign firms that do, enabling indirect access to the US financial system.

FinCEN’s submission highlights that Huione has laundered over $36 million from crypto “pig butchering” scams and at least $37 million linked to North Korean cyber heists.

Haowang Guarantee reportedly serves as a “one-stop shop” for criminals to convert illicit crypto into fiat currency.

Huione has also created a US dollar-pegged stablecoin, the US Dollar Huione (USDH), which FinCEN claims cannot be frozen and facilitates money laundering.

The National Bank of Cambodia revoked Huione’s local banking license in March, citing regulations prohibiting payment firms from dealing in digital assets.

The proposed rule is subject to a 30-day public comment period before it can take effect.