A Nasty Takedown: The US Treasury's Crackdown on Huione Group
U.S. Treasury Accuses Huione of Laundering $37 Million from Cyber Thefts Originated in North Korea
Here's the lowdown:
- The US Treasury guns for Huione Group, blocking its access to American banking channels
- Feds accuse the Cambodian conglomerate of laundering a whopping $4 billion between 2021-2025, including $37 million from North Korean cyber heists
- Huione's sprawling business empire includes payment platform Huione Pay, crypto exchange Huione Crypto, and shady online marketplace Haowang Guarantee
- Cambodia's central bank ripped Huiane's banking license in March
- FinCEN's proposed action faces a 30-day public comment period before implementation
On May Day, the US Treasury Department announced its intention to bar Cambodia-based Huione Group from accessing the US financial system. The Financial Crimes Enforcement Network (FinCEN) revealed that Huione had helped North Korea's Lazarus Group launder cryptocurrency.
FinCEN's proposed rule would nix US financial institutions from setting up or maintaining accounts with Huione Group. The objective? To sever Huione's ties to the US banking system.
US Treasury Secretary Janet Yellen called out Huione for becoming a "lair for malicious cyber actors", who have "fleeced billions from unsuspecting Americans". With this action, the Treasury aims to impede these cyber criminals' ability to convert their ill-gotten gains.
Huione's business network spreads wide, comprising services like Huione Pay PLC, cryptocurrency exchange Huione Crypto, and Haowang Guarantee—an online marketplace dealing in seedy offerings.
Though Huione doesn't directly engage with US financial institutions, it leans on relationships with foreign companies, allowing indirect access to the American financial system.
Cash Laundering on a Grand Scale
According to FinCEN, Huione laundered about $4 billion in tainted profits from August 2021 to January 2025. That includes over $36 million from "pig butchering" scams, where investors buy fake cryptocurrencies only to have their money swallowed up.
At least $37 million of the laundered crypto profits, FinCEN reports, finds roots in North Korean cyber robberies. North Korea is notorious for funding its weapons programs through digital asset thefts.
FinCEN classifies Haowang Guarantee as a "criminal's dream" platform, enabling bad actors to launder cryptocurrencies stolen through illegal activities and convert them to traditional currency.
Huione created its own USD-pegged stablecoin called USDH. FinCEN warns that the token can't be frozen by authorities, making it a handy tool for Huione to launder funds without the hassle of asset seizure.
The proposed rule operates under Section 311 of the Patriot Act, giving the Treasury Secretary the power to tackle specific money laundering and terrorist financing threats.
Cambodia's financial authorities have already acted against Huione. In March, the National Bank of Cambodia yanked Huione's local banking license due to its crypto dealings. The bank states that payment service providers aren't allowed to trade in digital assets within the country.
In January, Google scuttled Huione Guarantee, a Telegram-based app, following an investigation by blockchain analytics firm Elliptic. Their investigation uncovered links between the platform and illicit activities.
The notice of proposed rulemaking has a 30-day public comment period before it becomes official.
Enrichment Insights:
- The US Treasury's move aims to disrupt Huione's access to the US banking system, thereby disrupting its ability to launder funds, mostly linked to North Korean cybercrimes.
- FinCEN's rule targets two of Huione's key services, Huione Pay PLC and Huione Crypto, and fictitious marketplace Haowang Guarantee, severing the group's connections with US financial institutions.
- FinCEN's action suggests that Huione had laundered a monumental $4 billion between 2021-2025, with the bulk of this being tainted North Korean funds. This action follows Cambodia's March 2023 revocation of Huione's banking license.
- The US Treasury Department announced its intention to prohibit Cambodia-based Huione Group from accessing the US financial system.
- FinCEN's proposed rule would prohibit US financial institutions from setting up or maintaining accounts with Huione Group.
- The US Treasury aims to impede Huione's ties to the US banking system as part of a crackdown on its alleged money laundering activities.
- Huione Group, reportedly involved in cryptocurrency laundering, operates services like Huione Pay PLC, Huione Crypto, and Haowang Guarantee.
- FinCEN alleges that Huione laundered about $4 billion in tainted profits from August 2021 to January 2025, including $37 million linked to North Korean cyber heists.
- The notice of proposed rulemaking by FinCEN falls under Section 311 of the Patriot Act, empowering the Treasury Secretary to tackle specific money laundering and terrorist financing threats.
