Huione-linked wallets move $943 million USDT to exchanges despite FinCEN sanctions

Huione-linked wallets have continued to transfer significant amounts of USDT to centralized exchanges despite recent regulatory actions by the US Financial Crimes Enforcement Network (FinCEN). According to data from Global Ledger, nearly $1 billion in USDT has been moved to centralized exchanges, highlighting the ongoing illicit crypto activity and the complex financial flows tied to Huione’s network.

Following FinCEN’s designation of Huione as a primary money laundering concern, US financial institutions were prohibited from maintaining correspondent accounts with the group. However, blockchain analytics reveal that Huione-linked wallets have continued to move substantial volumes of Tether (USDT), with over $10 billion transacted on the Tron network and $219 million on the Ethereum network between May 1 and June 17, 2025. Of this, nearly $943 million flowed into major centralized exchanges (CEXs), indicating that despite regulatory pressure, Huione’s financial operations remain active through complex transaction layering and indirect routes.

Huione’s operational footprint extends beyond Cambodia and China Hong Kong, with a key subsidiary, Huione Crypto, registered in Poland since mid-2023. Global Ledger’s analysis confirms that the Poland-registered entity is integrally linked to Huione’s broader ecosystem, sharing wallet infrastructure and transaction flows with other subsidiaries such as Huione Pay. This interconnection complicates enforcement efforts, as funds are routed through multiple jurisdictions and service providers, including OTC desks and nested intermediaries, to obscure origins and maintain liquidity within centralized exchanges.

Yury Serov of a Swiss blockchain analytics firm notes that Huione funds often pass through layered transactions and OTC desks, maintaining indirect exposure to major centralized exchanges. This strategy allows Huione to continue its operations despite the regulatory restrictions imposed by FinCEN.

Huione Guarantee, the group’s Telegram-based illicit marketplace, announced a suspension of operations in May 2025 following intensified crackdowns. However, blockchain analytics firms report increased transactional activity linked to Huione’s marketplace operations post-designation, suggesting continued underground engagement. Contrastingly, another firm asserts that Huione Guarantee’s activity has effectively ceased, emphasizing the distinction between Huione Guarantee and Huione Pay’s ongoing payment services. The shutdown of Huione Guarantee has catalyzed the emergence of over 30 new illicit marketplaces, filling the void left in the darknet ecosystem.

The rapid proliferation of successor marketplaces after Huione Guarantee’s closure parallels the aftermath of Hydra Market’s 2022 shutdown, which despite enforcement actions, remained the highest-earning darknet market that year. This cyclical pattern demonstrates that takedowns rarely eliminate illicit crypto activity but instead drive it into new channels or stealth operations. Similar cases include Garantex’s rebranding to Grinex and eXch’s stealth resumption post-seizure, underscoring the resilience and adaptability of crypto-enabled illicit networks.

The Huione case exemplifies the challenges regulators face in disrupting transnational crypto crime networks. The use of layered transactions, multi-jurisdictional registrations, and indirect exchange exposure complicates traditional enforcement mechanisms. Enhanced blockchain forensic capabilities and international cooperation are critical to tracing illicit flows and enforcing compliance. Moreover, the ongoing activity of Huione Pay and its crypto exchange services highlights the necessity for continuous monitoring of crypto payment platforms linked to suspicious entities.

Despite FinCEN’s designation and regulatory sanctions, Huione-linked wallets continue to move substantial USDT volumes through centralized exchanges, leveraging complex transaction structures and multi-jurisdictional entities. The persistence of Huione’s operations and the rise of successor darknet markets illustrate the enduring challenge of combating illicit crypto finance. Effective enforcement will require sophisticated analytics, cross-border collaboration, and adaptive regulatory frameworks to address the evolving tactics of crypto-enabled criminal networks.