Huione Crypto Laundering Network Thrives Despite Shutdown and Sanctions, Chainalysis Reports

Huione Crypto Network Spurns Shutdown and Sanctions Orders The regulatory headache crypto money laundering platform Huione continues to operate despite widespread reports of its shut-down and a recent regulatory action by the U.S. government. Chainalysis figures confirm volumes on the network have continued to grow after the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) placed Huione as a priority money laundering target on May 1. FinCEN’s Section 311 Action Falls Short to Shut Down Operations FinCEN’s action called into play Sections 311 and 9714 of the USA PATRIOT Act, allowing for rapid isolation of suspected illicit actors. The tool was only used for a second time on a crypto entity since the Bitzlato case. The action would have likely cut off Huione’s access to U.S. financial services, but Chainalysis has experienced minimal disruption to its business. Huione Rebrands and Maintains User Base Following its alleged shutdown, Huione re-emerged shortly afterwards with a fresh domain—Huione.me—and its brand intact. Telegram utilization and social networking activity remain high, and the platform continues to offer trading in its native XOC token and the stablecoin USDH. Rivals Fall Short to Make Up the Gap Other crypto guarantee businesses, such as Tudou Danbao, saw temporary traffic spikes but none that came close to Huione’s volume or turnover. This suggests that users stuck very much with the Huione network in spite of the regulatory crackdown. Enforcement Gaps Highlighted by Blockchain Analysts Chainalysis pointed out that the survival of Huione demonstrates the failure of piecemeal regulation . It called for greater international coordination and real-time intelligence sharing to deal with such a sophisticated money laundering network. “Without co-ordinated effort, enforcement will be restricted in effectiveness,” the report further added. Conclusion Huione’s ongoing operations raise profound concerns about the effectiveness of current crypto enforcement measures. As blockchain-based laundering networks grow, regulatory frameworks and interagency cooperation must adapt in turn to prevent further avoidance.

Source: BTC Pulse