US Treasury targets Cambodia’s Huione group with banking ban over crypto laundering claims

The United States Treasury has proposed cutting off Cambodia-based Huione Group from the country’s financial system after it was found to be responsible for laundering billions in crypto tied to scams and North Korean cyberattacks. On May 1, the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) said Huione had become a “critical node” for moving illicit funds linked to DPRK cyber heists and large-scale scams like pig butchering. As such, the agency has proposed a rule that would block American banks from maintaining any accounts on behalf of the group, effectively severing its access to US correspondent banking. The move, FinCEN added, is aimed at degrading Huione’s ability to help malicious actors “secure revenue from or for their criminal schemes.” In an accompanying statement, Treasury Scott Bessent was quoted as saying: Today’s proposed action will sever Huione Group’s access to correspondent banking, degrading these groups’ ability to launder their ill-gotten gains. Treasury remains committed to disrupting any attempt by malicious cyber actors to secure revenue from or for their criminal schemes. The proposed rule is currently open to public comment for 30 days before it can be finalised and enforced. What is the Huione Group? Huione Group is a Cambodian business conglomerate that runs a mix of financial and tech services. At the centre of it is Huione Pay, a payment platform, along with Huione Crypto, a virtual asset exchange, and most notably, a Telegram-based marketplace called Huione Guarantee, now rebranded as Haowang Guarantee. The group also has political ties. One of the directors of Huione Pay is reportedly Hun To, a cousin of Cambodian Prime Minister Hun Manet. Past investigations have linked Hun To to serious allegations, including money laundering and heroin trafficking, although no formal charges have emerged from those reports. Huione Guarantee, the group’s Telegram-based platform, became notorious for hosting thousands of channels offering services to cybercriminals. According to blockchain forensic firm Elliptic, it functions like a darknet marketplace, but on a publicly accessible domain. Vendors on the platform have been found selling scam website templates, stolen data, fake IDs, and even training on how to run investment frauds. The platform has also been linked to disturbing reports of human trafficking and abuse at so-called scam compounds in Southeast Asia. Elliptic’s research found that crypto wallets tied to the group and its merchants had received over $11 billion since 2021, most of it suspected to be tied to illicit activity. Meanwhile, FinCEN, in its May 1 proposal, estimated that Huione Group laundered at least $4 billion in illicit funds between August 2021 and January 2025, including funds tied to North Korean cyber heists and crypto investment scams . As previously reported by Invezz, on-chain investigator ZachXBT traced part of the funds stolen in last year’s hack of Japanese crypto exchange DMM to a wallet linked to Huione Group. Past actions against Huione group In response to mounting scrutiny, tech platforms and crypto firms have started to act. Google pulled Huione’s mobile app from the Play Store in January 2025 after reports of criminal activity, though the app still remains available on Apple’s App Store. Back in July 2024, Tether froze nearly $30 million in USDT linked to Huione’s accounts, reportedly triggering the launch of the group’s own stablecoin, USDH. The coin, pegged to the US dollar, was designed in a way that made it difficult to freeze or trace, allowing bad actors to bypass traditional oversight. The post US Treasury targets Cambodia’s Huione group with banking ban over crypto laundering claims appeared first on Invezz

Source: Invezz