U.S. Treasury Targets Huione Group Over Crypto Laundering Scandal

The U.S. Treasury Department is moving to block Cambodia’s Huione Group from using the U.S. financial system. In a recent announcement, the U.S. authority accused the company of helping criminals launder billions of dollars in stolen money, including funds linked to North Korean hackers and fake crypto investments. 

If approved, this major action would prevent Huione from accessing American banks and weaken its ability to hide illegal money.

Huione Helped Criminals Launder $4 Billion

The Financial Crimes Enforcement Network (FinCEN), a branch of the Treasury Department, accused Huione Group of helping move more than $4 billion in illegal funds between August 2021 and January 2025. This includes $37 million stolen in cyberattacks led by the North Korean hacking group known as Lazarus. 

Huione is also believed to be working with Southeast Asian criminal groups. These notorious groups run fake crypto investment schemes that trick people out of their money. The stolen funds are then moved through Huione’s platforms to avoid detection.

Huione Runs A Marketplace for Cybercrime

According to FinCEN, Huione runs several services that help criminals move stolen funds. These include crypto trading platforms, payment tools using traditional assets and cryptocurrency, and an online store called Haowang. This marketplace sells tools for setting up scams and carrying out cyberattacks.

Earlier this year, the firm launched its stablecoin. Experts believe this was done to avoid banking rules and prevent its assets from being frozen by global regulators.

A recent United Nations report described Haowang as a “one-stop shop” for cybercriminals. It warned that even if Huione is shut down, other regional groups may take its place. Several new platforms are now offering similar services to Huione. This may make it harder to stop the spread of cybercrime in the region.

U.S. Uses Patriot Act to Crackdown on Huione

To stop Huione, FinCEN has proposed action based on Section 311 of the Patriot Act. This law lets the U.S. stop foreign companies from using its financial system if they are linked to illegal activities. 

In a recent statement, Treasury Secretary Scott Bessent said this move will block Huione from operating with U.S. banks and make it harder for criminals to hide stolen funds. FinCEN’s plan would also stop Huione’s partners from opening or managing accounts in the U.S.

This move is a progressive move towards ensuring the integrity of financial systems in the United States. In 2023, the FinCEN proposed a regulation to enhance transparency in convertible virtual currency (CVC) mixing and combating terrorist financing. 

Once the proposal is published in the Federal Register, the public has 30 days to give feedback. If approved, Huione will lose access to U.S. banks and may no longer be able to support global cybercrime operations.