United States Proposes Sanctions Against Huione Group Due to Alleged $4 Billion Cryptocurrency Money Laundering Operation
UnveilingHuione Group: US Treasury's Crackdown on a Money Laundering Giant
Get the lowdown on the US Treasury Department's fierce crackdown on the Cambodian conglomerate, Huione Group, accused of extensive money laundering and cryptocurrency laundering activities, and the potential consequences for their global business.
Sticking it to the Bigtime Bad Guys
The US Treasury Department, through the Financial Crimes Enforcement Network (FinCEN), is planning a major blow to Huione Group by proposing to isolate them from the US financial system, making it harder for them to carry out money laundering activities.
Huione's Sordid Past
Huione Group is said to have connections to various criminal activities such as online investment scams, cryptocurrency fraud, cyber heists, and even ties to a North Korean hacking group, Lazarus. U.S. Treasury Secretary Scott Bessent called out Huione as a "marketplace of choice for malicious cyber actors," including those affiliated with the Democratic People's Republic of Korea (DPRK). This proposal, if enacted, will prevent US financial institutions from opening or maintaining accounts for Huione Group or any of its subsidiaries.
Pile 'em High, Sell 'em Low
In an alarming turn of events, between August 2021 and January 2025, Huione purportedly laundered more than $4 billion in suspicious transactions, with ties to North Korea-linked cyberattacks, "pig butchering" scams, and other illicit activities.
Investigations have revealed that Huione's network includes entities like Huione Pay, a fiat payment platform, Huione Crypto, a virtual asset service provider, and Hoawang Guarantee, a digital marketplace, all suspected of masking the origins of illicit funds and even issuing a stablecoin to streamline transactions across platforms.
The Naughty North Korean Connection
The FinCEN report focuses on Huione's close ties to the Lazarus hacking group, receiving over $150,000 in cryptocurrency from a wallet associated with Lazarus between June 2023 and February 2024. Despite claims of ignorance regarding the funds' ties to the hacking group, FinCEN argues that Huione's weak compliance framework allowed the unwanted transition to happen unnoticed.
With a history of using cryptocurrency to evade international sanctions, North Korea has been accused of using these digital assets to access restricted goods and services through anonymous cross-border transactions, making enforcement difficult.
A Wolf in Sheep's Clothing
Cross-examining the Huione platform, FinCEN found a noticeable lack of safety measures and protocols, like anti-money laundering (AML) and Know Your Customer (KYC) controls. Huione's failure to implement basic measures allows for suspicious activities to go unnoticed, making the system vulnerable to exploitation by criminal and hostile nation-states.
The US official maintains that Huione's lack of oversight ranks them among the most dangerous unregulated financial entities currently operating in the crypto market.
The proposal now enters a 30-day public consultation period during which U.S. authorities will evaluate feedback before making a final ruling. If Huione is banned, the impact will be considerable, as more cross-border transactions rely on the US dollar.
- The US Treasury Department, through FinCEN, proposes to isolate Huione Group from the US financial system to hinder their money laundering activities related to stablecoins and cryptocurrencies.
- Huione Group's alleged criminal activities include online investment scams, cryptocurrency fraud, cyber heists, and ties to the North Korean hacking group Lazarus.
- In a worrying development, Huione is suspected of laundering over $4 billion in suspicious transactions between August 2021 and January 2025, with ties to North Korea-linked cyberattacks, "pig butchering" scams, and other illicit activities.
- Huione's network includes suspect entities like Huione Pay, Huione Crypto, and Hoawang Guarantee, which are believed to mask the origins of illicit funds and issue a stablecoin for seamless transactions across platforms.
- A FinCEN report highlights Huione's close ties to the Lazarus hacking group, receiving over $150,000 in cryptocurrency from a wallet associated with Lazarus between June 2023 and February 2024.
- North Korea has been accused of using cryptocurrencies to evade international sanctions, accessing restricted goods and services through anonymous cross-border transactions, making enforcement difficult.
- FinCEN found a lack of safety measures and protocols, like anti-money laundering (AML) and Know Your Customer (KYC) controls, on the Huione platform, making it vulnerable to exploitation by criminal and hostile nation-states.
