In a bid to combat digital crime, the United States Treasury Department has cut ties with Cambodia-based Huione Group, accusing it of laundering billions in cryptocurrency for criminals. The Financial Crimes Enforcement Network (FinCEN) announced that the company will be barred from the U.S. financial system.
Ties to North Korea
The Treasury’s decision stems from Huione’s deep ties to illicit activities. FinCEN reports that between August 2021 and January 2025, the company laundered over $4 billion in illegal funds. This figure includes $36 million from “pig butchering” scams, which are fraudulent schemes using fake romantic relationships to steal crypto, and $37 million linked to North Korean cyber heists.
The company’s network, which includes Huione Pay PLC, Huione Crypto, and Haowang Guarantee, allegedly served as a hub for criminals, offering payment services and a stablecoin, the U.S. Dollar Huione (USDH), to dodge anti-money laundering rules. The group’s Telegram-based marketplace made it a go-to for cyber criminals, prompting FinCEN to use Section 311 of the PATRIOT Act to sever its U.S. banking access.
This move followed reports from crypto compliance firm Elliptic and the United Nations, which flagged Huione’s role in global fraud.
Impact of the Sanctions
The ban will likely disrupt the company’s operations, but it sends a warning to other crypto platforms. By isolating Huione, the Treasury aims to curb money laundering and protect digital markets, potentially stabilizing crypto trading. Financial institutions worldwide must now comply, or risk penalties, which could reshape how banks handle crypto clients.
The latest move follows recent U.S. actions, like sanctions on Sinaloa Cartel associates for laundering drug money via crypto and the lifting of sanctions on Tornado Cash after legal challenges. These steps show the Treasury balancing tough enforcement with regulatory shifts to encourage digital innovation.
The U.S. Treasury’s crackdown on Huione Group marks an important step in tackling crypto-related crime, aiming to safeguard investors. As the global crypto landscape continues to change, this action highlihgts the government’s resolve to stay vigilant.
Adding to the report, FinCEN recently revealed that it is now probing other Southeast Asian crypto hubs for similar illicit activities, signaling more crackdowns may loom.
