US Treasury Moves to Block Huione Group from US Banking System Over Crypto Crimes
1min read The US Treasury Department has proposed a significant measure to block the Cambodia-based Huione Group from accessing the US banking system, citing its involvement in facilitating crypto-related crimes. The proposed action, announced on May 1, aims to prohibit US financial institutions from opening or maintaining correspondent or payable-through accounts for or on behalf of the Huione Group. This move is part of a broader effort to combat money laundering and cybercrime activities linked to the group.
According to the Treasury's Financial Crimes Enforcement Network (FinCEN), Huione Group has established itself as a key player in the cybercrime ecosystem, providing services that enable malicious actors to launder illicit proceeds. The group has set up a network of businesses, including the payment service platform Huione Pay PLC, the crypto exchange Huione Crypto, and Haowang Guarantee, an online marketplace offering illicit goods and services. These entities collectively facilitate the laundering of at least $4 billion worth of illicit proceeds between August 2021 and January 2025, including more than $36 million from crypto pig butchering scams.
Huione Group's activities have been particularly concerning due to their ties to North Korea’s state-backed Lazarus Group, a notorious hacking collective known for its sophisticated cyber heists. The Treasury Department has accused Huione Group of helping the Lazarus Group launder its crypto, which has been used to fund North Korean state projects, including weapons development. At least $37 million worth of the crypto laundered has been linked to North Korea’s cyber heists, highlighting the group's significant role in facilitating these illicit activities.
One of the key concerns is Huione Group's creation of a US dollar-pegged stablecoin, the US Dollar Huione (USDH), which cannot be frozen and is used to carry out money laundering activities. This stablecoin has made it easier for criminals to convert their illicitly obtained crypto into fiat currency, further complicating efforts to track and seize these funds. The national bank of Cambodia has already revoked the company’s local banking license in March, underscoring the international concern over Huione Group's activities.
The proposed rule is subject to a 30-day public comment period before it can take effect. This measure is part of a broader strategy by the US Treasury Department to protect the US financial system from the threats posed by entities involved in illicit activities. By severing Huione Group's access to correspondent banking, the US aims to degrade the group's ability to launder their ill-gotten gains, thereby disrupting their criminal operations. This action underscores Washington's increasing efforts to combat digital asset abuse by rogue states and organized crime, highlighting the growing importance of regulatory measures in the fight against cybercrime.
Ask Aime: What impact will the Treasury's proposed actions against the Huione Group have on the cryptocurrency market in the US?
