Huntsman HUN stock plunges 69.9% as U.S. sanctions Khoon Group over crypto fraud ties

The share price fell to its lowest level since February 2016 today, with an intraday decline of 3.37%.

Huntsman’s (HUN) stock has been battered by fallout from U.S. Treasury sanctions imposed on its parent entity, Khoon Group, a Singapore-based firm accused of ties to a global cryptocurrency fraud network. The sanctions, announced on October 14, targeted Khoon Group and 145 other entities for alleged connections to Cambodian national Chen Zhi, a figure at the center of a scam involving forced labor camps in Cambodia. Despite Khoon Group’s public denial of involvement, the move triggered a 69.9% drop in its share price since October 14, compounding pressure on HUN. Leadership at Khoon Group has since reshuffled, with CEO Ang Kok Kwang and chairman Ang Jui Khoon resigning and replaced by independent director Queenie Tseung, a move aimed at restoring investor trust amid ongoing reputational damage.

The sanctions have intensified scrutiny on Khoon Group’s business practices and governance, with Singapore’s Housing and Development Board (HDB) clarifying it has had no direct contracts with the firm since the 1990s. This revelation has further eroded credibility, while Singaporean authorities have remained silent on the Ang family, citing ongoing investigations into Chen’s case. The U.S. Treasury’s action reflects a broader crackdown on cybercrime networks, with Khoon Group among 17 Singapore-registered firms sanctioned. For Huntsman, the fallout underscores the vulnerability of subsidiaries to parent company scandals, particularly in sectors reliant on regulatory compliance and corporate reputation. Analysts note that while Khoon Group’s leadership changes signal a pivot toward transparency, the long-term impact on HUN’s valuation will depend on resolving legal uncertainties and rebuilding stakeholder confidence.