#DigitalAssetBill - The US Treasury Department wants to sanction the Huione Group for its links to crypto crime.

The US Treasury has proposed cutting the Huione Group's access to the US banking system, accusing it of being involved in money laundering of cryptocurrencies.

The US Department of the Treasury seeks to block the Huione Group, based in Cambodia, from accessing the US banking system, accusing it of helping the state-backed Lazarus group from North Korea to launder crypto assets.

The Financial Crimes Enforcement Network (FinCEN) of the Treasury proposed on May 1 to prohibit US financial institutions from opening or maintaining correspondent or pass-through accounts for or on behalf of the Huione Group.

The Huione Group has established itself as the "market of choice for malicious cyber actors" such as the Lazarus Group, which has "stolen billions of dollars from ordinary American citizens," said US Treasury Secretary Scott Bessent in a statement on May 1.

"The proposed action today will cut the Huione Group's access to correspondent banking, reducing these groups' ability to launder their illicitly obtained profits."

The Huione Group has established a network of businesses that includes the payment services platform Huione Pay PLC, the cryptocurrency exchange Huione Crypto, and Haowang Guarantee, an online marketplace offering illicit goods and services.

Although the conglomerate does not have correspondent accounts with US financial institutions, it maintains accounts with foreign companies that have correspondent accounts in the United States, FinCEN of the Treasury noted in its regulatory filing.

The proposed rule is subject to a 30-day public comment period before it can take effect.

FinCEN stated that the Huione Group has laundered at least $4 billion in illicit profits between August 2021 and January 2025.