TLDR

  • US Treasury proposes cutting off Cambodia-based Huione Group from US banking system

  • Huione allegedly laundered $4 billion between 2021-2025, including $37 million from North Korean cyber heists

  • The conglomerate operates payment platform Huione Pay, crypto exchange Huione Crypto, and illicit marketplace Haowang Guarantee

  • Cambodia’s National Bank revoked Huione’s banking license in March

  • FinCEN’s proposed rule faces a 30-day public comment period before taking effect

The US Treasury Department has proposed barring Cambodia-based Huione Group from accessing the American banking system. The Financial Crimes Enforcement Network (FinCEN) announced on May 1 that the company helped North Korea’s state-sponsored Lazarus Group launder cryptocurrency.

The proposed rule would prohibit US financial institutions from opening or maintaining correspondent or payable-through accounts for the Huione Group. This action aims to cut off the company’s access to US banking channels.

US Treasury Secretary Scott Bessent stated that Huione Group has become the “marketplace of choice for malicious cyber actors” who have “stolen billions of dollars from everyday Americans.” The Treasury’s action seeks to disrupt these groups’ ability to convert stolen funds.

Huione Group operates a network of interconnected businesses. These include payment service platform Huione Pay PLC, cryptocurrency exchange Huione Crypto, and Haowang Guarantee, an online marketplace offering illicit goods and services.

While the conglomerate does not directly hold accounts with US financial institutions, it maintains relationships with foreign firms that do. This connection allows them indirect access to the US financial system.

Extensive Money Laundering Operation

According to FinCEN, Huione Group laundered approximately $4 billion worth of illicit proceeds between August 2021 and January 2025. This includes more than $36 million from cryptocurrency “pig butchering” scams where victims are lured into fake investment opportunities.

The Treasury claims at least $37 million of the laundered cryptocurrency has been linked to North Korea’s cyber theft operations. The country is known to fund its weapons programs through digital asset theft.

FinCEN described Haowang Guarantee as a “one-stop shop” for criminals. The platform allows bad actors to launder cryptocurrency obtained through illegal activities and convert it to traditional currency.

The conglomerate created its own US dollar-pegged stablecoin called USDH. According to FinCEN, this token cannot be frozen by authorities. This feature helps Huione carry out money laundering activities with less risk of asset seizure.

The proposed rule falls under Section 311 of the Patriot Act. This provision gives the Treasury Secretary options to target specific money laundering and terrorist financing threats.

Cambodia’s financial authorities have already taken action against the company. The National Bank of Cambodia revoked Huione’s local banking license in March. The bank stated that payment firms aren’t allowed to deal or trade digital assets in the country.

In January, Google removed Huione Guarantee, a Telegram-based app, following an investigation by blockchain analytics firm Elliptic. The investigation revealed the platform’s connections to illicit activities.

The notice of proposed rulemaking remains open for public comment for 30 days before it can take effect.

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