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U.S. Treasury Accuses Huione of Laundering $37 Million Obtained from Cyber Thefts by North Korea

U.S. Treasury cuts off Huione Group from American banking network, accusing them of laundering $4 billion in cryptocurrency, which included funds from North Korea.

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The US Crackdown on Cambodia-Based Huione Group: A Deep Dive

A New Phase in the Anti-Money Laundering Battle

U.S. Treasury Accuses Huione of Laundering $37 Million Obtained from Cyber Thefts by North Korea

In a bold move, the US Treasury has proposed cutting off the Cambodia-based Huione Group from the American banking system. The Financial Crimes Enforcement Network (FinCEN) accused Huione of being a hub for North Korean cybercrime-related money laundering.

The Huione Group's Operations and Accusations

The Huione Group operates a vast network of businesses, including the payment platform Huione Pay, the crypto exchange Huione Crypto, and the shadowy online marketplace Haowang Guarantee. FinCEN claims that the group laundered approximately $4 billion in illicit proceeds between August 2021 and January 2025.

This money laundering operation includes over $37 million traced back to North Korean cyber heists and more than $36 million associated with "pig butchering" scams, where victims are lured into fake investment opportunities. The platform Haowang Guarantee is described as a "one-stop shop" for criminals, offering a means to launder cryptocurrency obtained through illegal activities and convert it to traditional currency.

US Treasury's Actions and Consequences

If the proposed rule under Section 311 of the Patriot Act is enacted, US financial institutions will be prohibited from opening or maintaining accounts for the Huione Group, effectively cutting off their access to the US banking channels. The Treasury's action aims to disrupt these criminal groups' ability to convert stolen funds.

Regional Actions and Google's Response

Cambodia's financial authorities have already acted against the company. In March, the National Bank of Cambodia revoked Huione's local banking license, and in January, Google removed the Huione Guarantee app from its platform following an investigation by Elliptic. The app was found to have connections to illicit activities.

The Proposed Rule and Public Comment Period

The notice of proposed rulemaking remains open for a public comment period of 30 days before it can take effect.

Enrichment Insights:

Background of Huione Group and the US Treasury's Action:

  • Huione Group's Network: The group operates multiple interconnected businesses, including Huione Pay, Huione Crypto, and Haowang Guarantee. These entities are allegedly committing significant money laundering activities.
  • Lack of Compliance: Huione's subsidiaries are noted for their lack of Anti-Money Laundering (AML) and Know-Your-Customer (KYC) protocols, making them attractive to illicit actors.
  • Impact on International Financial Institutions: The proposed action could have a global impact, as international financial institutions may also reconsider their ties with Huione to avoid losing access to US dollar markets.
  1. The US Treasury has announced a plan to prohibit the Cambodia-based Huione Group from the American banking system, citing the group as a hub for North Korean cybercrime-related money laundering.
  2. The Huione Group, with businesses such as Huione Pay, Huione Crypto, and Haowang Guarantee, has been accused of laundering approximately $4 billion in illicit proceeds.
  3. FinCEN claims that the Huione Group's operations include money traced back to North Korean cyber heists and pig butchering scams, where victims are lured into fake investment opportunities.
  4. The proposed rule under Section 311 of the Patriot Act, if enacted, would prohibit US financial institutions from opening or maintaining accounts for the Huione Group, effectively cutting off their access to US banking channels.
  5. Google removed the Huione Guarantee app from its platform following an investigation by Elliptic, due to its connections to illicit activities.
  6. The public comment period for the proposed rule remains open for 30 days before it can take effect.
  7. This move by the US Treasury marks a significant development in the ongoing battle against money laundering, with potential implications for international financial institutions and the broader technology and finance business sectors.
American Treasury initiatives restrict Huione Group of Cambodia from the U.S. banking network, following traces of over $4 billion in laundered cryptocurrency, which reportedly contained funds linked to North Korea.
American Treasury initiates banking system exclusion for Huione Group of Cambodia, as they allegedly laundered approximately $4 billion in cryptocurrency, including funds connected to North Korea.
U.S. authorities take action to bar Huione Group from the American banking network, citing laundering of approximately $4 billion in cryptocurrency, which included funds originating from North Korea.

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