The US Treasury Department has proposed cutting off Cambodia's Huione Group from the US banking system due to alleged ties to crypto laundering and North Korea's Lazarus Group. Here's what's happening :

- *Allegations against Huione Group*: The group is accused of laundering over $4 billion in illicit funds between August 2021 and January 2025, including $37 million linked to North Korean cyber heists and $36 million from crypto investment scams.

- *Ties to Lazarus Group*: The US Treasury claims Huione Group has facilitated operations by North Korea's notorious Lazarus Group, which has stolen billions in crypto assets.

- *Proposed action*: The Treasury's Financial Crimes Enforcement Network (FinCEN) recommends banning US financial institutions from opening or maintaining correspondent or payable-through accounts for Huione Group or its affiliates.

- *Impact*: This move aims to sever Huione Group's access to correspondent banking, degrading their ability to launder ill-gotten gains.

- *Huione Group's operations*: The group operates various financial and digital platforms, including Huione Pay and Huione Crypto, and has launched its own stablecoin, US Dollar Huione (USDH).

- *Previous actions*: The National Bank of Cambodia revoked Huione's local license earlier this year, emphasizing that digital asset trading is prohibited by payment service providers within the country.

The proposed rule will undergo a 30-day public comment period before it can be finalized. This development is part of the US Treasury's efforts to disrupt malicious cyber actors' ability to secure revenue from their criminal schemes .

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