U.S. authorities take action to inhibit Huione Group due to allegations of cryptocurrency money laundering.
Hangin' with the Huione Group: A Troublesome Tango with Treasury
In a dramatic move, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has set its sights on the Cambodian conglomerate, Huione Group. This powerhouse is allegedly connected to the largest illicit online marketplace and could soon find itself cut off from the American financial system, under a new proposed rule.
On May 1st, FinCEN fired the starting gun on this game-changing maneuver, announcing its intention to brand the Huione Group as a "primary money laundering concern." The proposed rule, if approved, would bar U.S. financial institutions from maintaining any correspondent or payable-through accounts for the Huione Group.
"Ready to sever ties, Lee?" Treasury Secretary Scott Bessent declared in a statement accompanying the announcement. "Today's proposed action will chop Huione Group's access to correspondent banking, crippling their ability to launder their dirty money."
Interestingly, Huione Group doesn't keep its funds stateside. However, FinCEN alleges that the group operates through overseas firms, providing it with a covert pathway to the American financial system. This covert connection has reportedly allowed Huione to shield major cybercriminal operations, such as laundering stolen crypto for the notorious Lazarus Group from North Korea.
Google Turfs Huione App Post-Elliptic Report
Financially speaking, the group is said to have shifted at least $4 billion in illicit funds between August 2021 and January 2025. A significant chunk of these funds can be traced back to run-of-the-mill online scams like "pig butchering."
The extent of Huione's empire is staggering. The conglomerate has built a vast network of businesses to support its shenanigans, such as Huione Pay, a payment services firm, and Huione Crypto, a virtual asset platform. Not to mention a controversial Telegram-based marketplace—recently rebranded to Haowang Guarantee—that's functioned as a black market of choice for all sorts of shady dealings.
FinCEN has also taken aim at Huione's stablecoin, USDH, which is pegged to the U.S. dollar yet designed with an intricate mechanism that makes it nearly impossible to freeze. Officials believe this makes it the perfect vehicle for sidestepping oversight and channeling ill-gotten gains into fiat currency.
"The USDH service offers Huione Group clients a virtually risk-free ecosystem to move or store CVC without the fear of law enforcement intervention," FinCEN warned in its rulemaking submission.
Back in July 2024, Tether froze nearly $30 million in USDT linked to Huione accounts, which might have spurred the creation of USDH.
Time for Public Comment
Currently, the proposed rule is out for public comment for a 30-day period before it becomes official.
In July 2024, blockchain forensics firm Elliptic sounded the alarm around Huione, dubbing it a central hub for Southeast Asian cybercriminals. The report painted a chilling picture of the group's platform as the epicenter of its illegal activities, brimming with thousands of Telegram channels offering laundering services, scam website tools, and human trafficking-related services.
The platform's mobile app was given the cold shoulder by Google Play Store in January, but it's still up and running on the Apple App Store.
Huione's Own Stablecoin: A Feather in the Cap
Remember, folks, these are just allegations—the proposed rule is still in its infancy. If approved, it would represent a landmark victory in the ongoing battle against financial crime. So stay tuned as the drama unfolds!
Additional Info:- The current status of the proposed rule by FinCEN to label the Huione Group as a "primary money laundering concern" is that it has been issued for public comment. FinCEN announced on May 1, 2025, that it intends to designate the Cambodia-based Huione Group as a foreign financial institution of primary money laundering concern due to its alleged involvement in laundering at least $4 billion in illicit proceeds between August 2021 and January 2025. This includes ties to cryptocurrency heists by North Korean hacking groups and "pig butchering" scams. If the proposed rule is finalized, it would prevent U.S. financial institutions from opening or maintaining correspondent accounts for the Huione Group, effectively cutting its access to the U.S. financial system. [1][2][4][5]- At present, the rule is in a proposed state awaiting further steps, including public input, before it can be implemented.
- The Huione Group's virtual asset platform, Huione Crypto, is one of the businesses supported by the conglomerate, reportedly involved in illicit activities.
- FinCEN's allegation includes the participation of Huione Group in laundering stolen crypto for the Lazarus Group from North Korea.
- The Huione Group's stablecoin, USDH, is designed with a complex mechanism, making it difficult to freeze and potentially ideal for evading oversight.
- In its rulemaking submission, FinCEN warned that the USDH service offers Huione Group clients a virtually risk-free ecosystem to move or store crypto without the fear of law enforcement intervention.
- Elliptic, a blockchain forensics firm, dubbed the Huione Group as a central hub for Southeast Asian cybercriminals, providing a chilling picture of its platform as the epicenter of illegal activities.
- Google Play Store rejected the Huione Group's mobile app in January, but it continues to operate on the Apple App Store.
