The US Department of the Treasury Wants to Sanction Huione Group for Its Links to Crypto Crime

The US Treasury has proposed cutting off 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 Huione Group, based in Cambodia, from accessing the US banking system, accusing it of helping the state-backed Lazarus group from North Korea 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” like 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 action proposed today will cut off Huione Group’s access to correspondent banking, reducing the ability of these groups to launder their illegally obtained profits.”

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

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

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