On May 1, 2025, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) took a decisive step against Cambodia-based Huione Group, identifying it as a “financial institution of primary money laundering concern” under Section 311 of the USA PATRIOT Act. This move, if finalized, would effectively cut Huione Group off from the U.S. financial system, prohibiting American financial institutions from opening or maintaining correspondent accounts for the group or its affiliates.
What Is Huione Group?
Huione Group is a Cambodian financial conglomerate operating a network of businesses, including:
- Huione Pay PLC: A payment services institution
- Huione Crypto: A virtual asset service provider
- Haowang Guarantee: An online marketplace for illicit goods and services
This network has become a central hub for laundering proceeds from cyber heists, cryptocurrency investment scams (notably “pig butchering” scams), and other forms of digital fraud.
The Allegations: Billions Laundered, Ties to North Korea
FinCEN alleges that, between August 2021 and January 2025, Huione Group laundered at least $4 billion in illicit proceeds. This includes:
- $37 million linked to North Korean hacking groups, such as the Lazarus Group, which are notorious for major cryptocurrency heists.
- $36 million from “pig butchering” scams, where victims are deceived online and convinced to invest in fraudulent crypto schemes.
- Hundreds of millions more from other cyber scams and transnational criminal organizations operating in Southeast Asia.
The group’s platforms, including its recently launched USDH stablecoin, have been designed to provide high levels of transactional anonymity, making it difficult for authorities to trace illicit funds. USDH is described as “unfreezable,” allowing criminals to evade asset freezes and financial surveillance.
Why Is This Action Significant?
The U.S. Treasury’s action is a response to Huione Group’s role as a “marketplace of choice” for malicious cyber actors, including North Korean operatives and organized crime syndicates. Treasury Secretary Scott Bessent stated:
“Today’s proposed action will sever Huione Group’s access to correspondent banking, degrading these groups’ ability to launder their ill-gotten gains. Treasury remains committed to disrupting any attempt by malicious cyber actors to secure revenue from or for their criminal schemes.”
The move follows findings by the United Nations Office on Drugs and Crime, which described Huione’s Haowang marketplace as a comprehensive ecosystem supporting cybercriminal infrastructure, offering everything from fake documentation to scam toolkits.
What Happens Next?
- Public Consultation: The proposed rule is now open for public comment for 30 days.
- Potential Impact: If enacted, U.S. financial institutions will be required to sever all correspondent banking relationships with Huione Group and its affiliates, isolating it from the U.S. and potentially global financial systems.
- Broader Implications: This action is part of a broader U.S. crackdown on international crypto crime and money laundering, especially those connected to state actors like North Korea and large-scale online fraud.
Key Takeaways
- Huione Group is accused of laundering billions in illicit funds, including those linked to North Korean hackers and Southeast Asian criminal syndicates.
- FinCEN’s proposed rule would ban U.S. banks from doing business with Huione, aiming to disrupt its ability to facilitate global cybercrime.
- The case highlights the growing intersection of crypto, cybercrime, and international financial regulation.
As the digital economy evolves, so too do the methods and scale of financial crime. The Huione Group case serves as a stark reminder of the challenges regulators face in keeping pace with sophisticated, transnational criminal networks exploiting both fiat and crypto systems.
Stay tuned for further updates as the public consultation period progresses and the U.S. Treasury finalizes its decision on Huione Group’s fate.