The US Treasury is looking to restrict the Huione Group’s access to the US banking system, citing its involvement in cryptocurrency laundering activities. The Treasury Department has accused the Cambodia-based company of assisting North Korea’s state-sponsored Lazarus Group in laundering crypto assets.
On May 1, the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed measures to prohibit US financial institutions from opening or maintaining correspondent or payable-through accounts for the Huione Group.
According to US Treasury Secretary Scott Bessent, Huione Group has become a “marketplace of choice for malicious cyber actors” like the Lazarus Group, which has reportedly stolen billions from American citizens. He emphasized that the proposed action would cut off Huione Group’s access to correspondent banking, thereby hindering these groups’ ability to launder their illicit proceeds.
The Huione Group operates a network of businesses, including the payment service platform Huione Pay PLC, the cryptocurrency exchange Huione Crypto, and Haowang Guarantee, an online marketplace for illicit goods and services. Although the conglomerate does not maintain correspondent accounts with US banks, it does have accounts with foreign institutions that do, as noted in FinCEN’s rulemaking submission.
Expansion into Cybercrime
FinCEN alleges that Huione Group has laundered at least $4 billion in illicit proceeds between August 2021 and January 2025, including over $36 million from crypto scams known as pig butchering. Additionally, approximately $37 million of the laundered crypto is linked to North Korea’s cyber thefts.
Haowang Guarantee has positioned Huione Group as a “one-stop shop” for criminals looking to launder cryptocurrency acquired through illegal means and convert it into fiat currency. The conglomerate has also introduced a US dollar-pegged stablecoin, USD Huione (USDH), which FinCEN claims is unfreezable and facilitates money laundering.
In March, the National Bank of Cambodia revoked Huione Group’s local banking license, stating that payment firms are prohibited from engaging with digital assets in the country.
#Bitcoin #Business #banking #Crypto #cryptocurrencies
Source: Cointelegraph Edited by: Bernie S