The US Treasury Department is taking steps to sever financial ties with Cambodia-based Huione Group over its alleged involvement in laundering billions in illicit crypto-linked funds.
In a move targeting potential national security risks, the Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed a rule that would prohibit Huione from accessing the US financial system, citing connections to North Korean hackers and crypto fraud networks.
The proposed designation, announced Thursday under Section 311 of the USA PATRIOT Act, would label Huione Group as a primary money laundering concern. If enacted, the rule would compel US financial institutions to cut off any correspondent banking relationships with Huione and its affiliates.
FinCEN Alleges Crypto Heists, Scams, and Stablecoin Abuse
The Treasury alleges that Huione played a significant role in laundering over $4 billion from 2021 to 2025, including $37 million allegedly linked to the North Korean hacking collective Lazarus Group.
According to FinCEN’s statement, Huione Group facilitated laundering for cybercrimes ranging from crypto investment scams to high-profile hacking incidents.
The group reportedly supported transnational criminal organizations operating out of Southeast Asia, offering services including crypto exchanges, online payment processing, and a marketplace catering to illicit cyber actors.
The US Treasury emphasized that such operations allowed Huione to become a major hub for criminal finance activity, with its platforms being routinely used to funnel proceeds from cyber theft.
One of the group’s newest developments includes launching its own stablecoin. Blockchain analytics firm Elliptic previously flagged the move as a response to increasing regulatory crackdowns, suggesting it was intended to bypass asset freezes and financial surveillance.
FinCEN noted that the stablecoin, combined with Huione’s fiat and cryptocurrency services, enabled high levels of transactional anonymity, thereby complicating efforts to trace illicit finance.
Treasury Secretary Scott Bessent stated that the proposed measure aims to “degrade these groups’ ability to launder their ill-gotten gains” by severing access to the US banking system.
The move also follows findings by the United Nations Office on Drugs and Crime, which characterized Huione’s Haowang marketplace as a comprehensive ecosystem supporting cybercriminal infrastructure. According to the UN report, Haowang provides everything from fake documentation to scam toolkits and payment systems.
International Response and Enforcement Outlook
The proposal to restrict Huione comes amid growing global concern over the rise in crypto-related financial crime. US officials say that cutting off Huione’s access to the American banking system would send a strong signal to similarly structured platforms operating under the radar.
However, the UN has also warned that similar groups continue to emerge across Southeast Asia, potentially undermining enforcement efforts targeting Huione alone. The public comment period for FinCEN’s proposed rule will remain open for 30 days following publication in the Federal Register.
In the meantime, the Treasury is expected to continue working with international partners and private-sector institutions to track digital asset flows and clamp down on networks facilitating cyber-enabled crime.
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