US Treasury Proposes Ban on Huione Group Over $4 Billion in Laundered Cryptocurrency

The US Treasury Department has proposed a significant measure to bar Cambodia-based Huione Group from accessing the American banking system. This action comes after the Financial Crimes Enforcement Network (FinCEN) announced on May 1 that the company had facilitated the laundering of cryptocurrency for North Korea’s state-sponsored Lazarus Group. The proposed rule aims to prohibit us financial institutions from opening or maintaining correspondent or payable-through accounts for the Huione Group, effectively cutting off the company’s access to US banking channels.

US Treasury Secretary Scott Bessent highlighted the severity of the situation, stating that Huione Group has become a preferred platform for malicious cyber actors who have stolen billions of dollars from ordinary Americans. The Treasury’s action is designed to disrupt these groups’ ability to convert stolen funds into usable assets.

Huione Group operates a complex network of interconnected businesses, including the payment service platform Huione Pay PLC, the cryptocurrency exchange Huione Crypto, and Haowang Guarantee, an online marketplace that offers illicit goods and services. While the conglomerate does not directly hold accounts with US financial institutions, it maintains relationships with foreign firms that do, allowing it indirect access to the US financial system.

According to FinCEN, Huione Group laundered approximately $4 billion worth of illicit proceeds between August 2021 and January 2025. This includes more than $36 million from cryptocurrency “pig butchering” scams, where victims are lured into fake investment opportunities. The Treasury claims that at least $37 million of the laundered cryptocurrency has been linked to North Korea’s cyber theft operations, which are known to fund the country’s weapons programs through digital asset theft.

FinCEN described Haowang Guarantee as a “one-stop shop” for criminals, allowing bad actors to launder cryptocurrency obtained through illegal activities and convert it to traditional currency. The conglomerate created its own US dollar-pegged stablecoin called USDH, which cannot be frozen by authorities. This feature helps Huione carry out money laundering activities with less risk of asset seizure.

The proposed rule falls under Section 311 of the Patriot Act, which gives the Treasury Secretary options to target specific money laundering and terrorist financing threats. Cambodia’s financial authorities have already taken action against the company. The national bank of Cambodia revoked Huione’s local banking license in March, stating that payment firms are not allowed to deal or trade digital assets in the country.

In January, google removed Huione Guarantee, a Telegram-based app, following an investigation by a blockchain analytics firm. The investigation revealed the platform’s connections to illicit activities. The notice of proposed rulemaking remains open for public comment for 30 days before it can take effect.