Huione Group Flagged by FinCEN for $98 Billion in Cryptocurrency Laundering

Huione Group, a Cambodia-based conglomerate, has been identified as a primary money laundering concern by the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN). The company has allegedly received $98 billion worth of cryptocurrency since 2014 through various illicit schemes, including money laundering, pig butchering, and online scams. These findings were reported by blockchain security firm Elliptic.

Huione Group, which has ties to the ruling Hun family in Cambodia, operates a Telegram-based marketplace. This platform facilitates the purchase of personal data, money laundering services, and even electric shackles intended for human use. The company's activities have raised significant concerns about its involvement in criminal enterprises and its impact on the broader financial ecosystem.

In January, Huione Group introduced its own stablecoin, USDH, which is designed to avoid transfer restrictions imposed on traditional digital currencies. Unlike third-party assets such as Tether's USDT, USDH cannot be frozen by external organizations. This move was likely an attempt to circumvent regulatory oversight and maintain the flow of illicit funds.

Despite the introduction of USDH, the crackdown by FinCEN is seen as a significant blow to Huione Group. Tom Robinson, co-founder of Elliptic, stated that this action should serve as a wake-up call for the broader financial ecosystem to strengthen the detection and disruption of cross-border laundering networks. The U.S. Treasury's move underscores the growing concern over the use of cryptocurrencies in illicit activities and the need for enhanced regulatory measures.

Additionally, Huione Group received $150,000 worth of cryptocurrency from the North Korean hacker group Lazarus Group. This group is known for stealing approximately $3 billion worth of cryptocurrency between 2018 and 2024, according to a report from a cybersecurity firm. The involvement of Lazarus Group further highlights the international scope of Huione Group's illicit activities and its connections to other criminal organizations.

An attempt to contact Huione Group for comment was unsuccessful by the time of publication. The lack of response from the company adds to the growing concerns about its operations and the need for further investigation into its activities. The U.S. Treasury's actions against Huione Group are part of a broader effort to combat money laundering and other financial crimes, and they serve as a reminder of the importance of vigilance in the cryptocurrency space.