US Treasury Moves to Block Huione Group from US Banking System Over Crypto Crimes

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 proposal, put forth by the Treasury's Financial Crimes Enforcement Network (FinCEN), aims to prohibit US financial institutions from maintaining correspondent or payable-through accounts for or on behalf of the Huione Group.

According to the Treasury, Huione Group has established itself as a key player in the cybercrime ecosystem, providing a platform for malicious actors like North Korea’s state-backed Lazarus Group to launder their illicit proceeds. The group has been accused of laundering at least $4 billion worth of illicit funds between August 2021 and January 2025, including over $36 million from crypto pig butchering scams. Additionally, at least $37 million of the laundered crypto has been linked to North Korea’s cyber heists.

Huione Group operates 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. The conglomerate has also created a US dollar-pegged stablecoin, the US Dollar Huione (USDH), which FinCEN claims cannot be frozen and aids in money laundering activities. The National Bank of Cambodia has revoked the company’s local banking license in March, stating that payment firms aren’t allowed to deal or trade digital assets in the country.

The proposed rule is subject to a 30-day public comment period before it can take effect. If implemented, this measure will sever Huione Group’s access to correspondent banking, significantly degrading their ability to launder illicit funds. This action underscores the US Treasury's commitment to combating digital asset abuse by rogue states and organized crime, aiming to protect the US financial system from the threats posed by entities involved in illicit activities.