Huione’s Persistent Billions: $1B Illicitly Moved to Crypto Exchanges After FinCEN Action

Imagine a financial conglomerate targeted by the highest levels of U.S. financial law enforcement, yet still managing to funnel nearly a billion dollars through the global crypto ecosystem. This isn’t fiction; it’s the unsettling reality of Huione, a group recently designated by FinCEN as a primary money laundering concern. Despite significant regulatory pressure, new data reveals that wallets linked to Huione have continued to move substantial amounts of Tether (USDT) to centralized crypto exchanges, raising critical questions about the effectiveness of sanctions and the resilience of illicit financial networks.

Unveiling Huione’s Vast Network and FinCEN’s Action

On May 1, the U.S. Financial Crimes Enforcement Network (FinCEN) took decisive FinCEN action, designating Huione as a primary money laundering concern under the PATRIOT Act. This powerful designation prohibits U.S. financial institutions from engaging with the controversial conglomerate, which is based in Cambodia and registered in Hong Kong. Huione has been widely accused of operating as a transnational fraud and money laundering platform, allegedly facilitating operations for notorious cybercrime groups, including North Korea’s state-sponsored Lazarus Group and those involved in devastating “pig butchering” scams.

The Huione Group operates through at least three known subsidiaries, each playing a distinct role in its expansive network:

• Huione Guarantee: A Telegram-based illicit marketplace, reportedly facilitating the sale of illicit goods and services and the laundering of scam proceeds.
• Huione Pay: A crypto and fiat payments service, indicating a broader reach into legitimate-appearing financial operations.
• Huione Crypto: A centralized exchange, surprisingly registered in Poland in mid-2023, though primarily operating out of Cambodia.

Despite the regulatory crackdown, Global Ledger, a Swiss blockchain analytics firm, observed an astonishing $10.13 billion in USDT transactions on Tron and $219 million on Ethereum in Huione-linked wallets between May 1 and June 17. Of this staggering sum, nearly $942.9 million ultimately flowed into major crypto exchanges.

The Persistent Flow to Crypto Exchanges: How Funds Move

The sheer volume of funds moving from Huione-linked wallets to centralized exchanges post-FinCEN designation is a significant concern. Yury Serov, investigations lead at Global Ledger, highlighted that activity from these wallets indicates continued exposure for major exchanges, even if often through indirect routes. “Huione-associated funds may be routed via nested service providers, OTC desks, or layered transactions that obscure the original source,” Serov explained. This sophisticated layering is a common tactic to evade detection, but as Serov noted, “the underlying movement patterns still lead to major centralized exchanges, suggesting continued operational use.”

This persistent flow underscores the challenges in shutting down illicit financial operations that leverage cryptocurrencies. While direct interactions might be curtailed, the adaptability of these networks allows them to find alternative pathways, ensuring their continued access to the broader crypto ecosystem. The fact that Huione Crypto remains listed on Poland’s business register as of July 2025 further complicates enforcement efforts, as it provides a veneer of legitimacy that can be exploited for illicit activities.

Is Huione’s Money Laundering Operation Truly Shut Down?

The extent of Huione’s money laundering operation shutdown has become a subject of intense debate among forensics experts. While multiple Huione-related websites and social channels initially went offline following the FinCEN action, many have reappeared under new domains. For instance, Super-exchange.co, a Huione-branded site, remained accessible and functional even after announcing a suspension of crypto operations.

The most prominent point of contention revolves around Huione Guarantee, once described as the largest darknet market ever, with over $24 billion in transaction volume. On May 13, Huione Guarantee (then Haowang Guarantee) announced its suspension and directed users to an alternative marketplace called Tudou, in which Huione reportedly holds a 30% stake.

However, analytics firms offer conflicting views:

• Chainalysis: Observed an increase in activity connected to Huione’s marketplace operations after the FinCEN designation, suggesting continued or adapted illicit activities.
• Elliptic: Claims Huione Guarantee’s activity has essentially ceased. They argue that some researchers conflate Huione Guarantee with Huione Pay, which has distinct crypto wallet infrastructure and continues to transact high volumes. Elliptic also noted the emergence of at least 30 new illicit marketplaces attempting to fill the void left by Huione Guarantee.

This divergence highlights the complexity of tracking and attributing illicit funds, especially when sophisticated groups adapt their strategies and infrastructure. The continued activity of Huione Pay and the group’s reported stake in Tudou indicate that while one arm might be severed, the hydra-headed nature of these criminal enterprises allows them to sprout new avenues for illicit gains.

Lessons from the Shadows: The Resurgence of Darknet Markets

The situation with Huione offers a stark reminder that the takedown of a major illicit service rarely spells the definitive end of criminal activity. Instead, it often triggers a rapid evolution and proliferation of successor platforms. This mirrors patterns observed after the collapse of other prominent darknet markets:

• Hydra Market: Once the dominant darknet platform, Hydra was shut down in April 2022 following sanctions from the U.S. Treasury’s OFAC. Despite its closure, Chainalysis identified Hydra as the highest-earning darknet market of 2022, showcasing its enduring impact and the subsequent emergence of numerous alternatives.
• Garantex/Grinex: A Russia-linked crypto exchange sanctioned by OFAC in 2022 and the EU in 2025, Garantex reportedly rebranded as Grinex and continued facilitating fund transfers. Global Ledger identified at least $1.66 billion flowing from Grinex-linked wallets into centralized exchanges, demonstrating the effectiveness of rebranding to evade sanctions.
• eXch: A crypto swapping service, eXch publicly announced its shutdown after German authorities seized its servers. However, TRM Labs reported that the service quietly resumed operations in stealth mode, highlighting the clandestine nature of these re-emergences.

These examples underscore a critical challenge for law enforcement and regulators: illicit networks are highly adaptive. When one platform is disrupted, its users and operators often migrate to new services or re-establish operations under new guises, perpetuating the cycle of illicit finance. The case of Huione, with its alleged stake in Tudou and the continued activity of its other subsidiaries, fits this pattern perfectly.

The Unyielding Challenge: Implications for Regulation and Security

The persistence of Huione’s financial flows, despite significant FinCEN action, poses a formidable challenge to global efforts against financial crime. It highlights the inherent difficulties in regulating a decentralized and pseudonymous financial landscape. For regulators, the cat-and-mouse game continues, demanding ever more sophisticated blockchain analytics tools and international cooperation to identify and disrupt these evolving networks.

For individuals and institutions interacting with cryptocurrencies, this serves as a crucial reminder of the importance of robust due diligence and adherence to Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. Major crypto exchanges, in particular, face immense pressure to enhance their screening mechanisms and collaborate with law enforcement to prevent their platforms from being exploited for illicit activities.

Conclusion: A Persistent Threat in the Digital Underworld

The revelation that Huione-linked wallets have moved nearly $1 billion to crypto exchanges since the initial FinCEN action is a sobering indicator of the ongoing battle against illicit finance. It underscores the adaptive nature of criminal enterprises that leverage cryptocurrencies for money laundering and other nefarious purposes. While law enforcement and regulatory bodies are making strides in identifying and disrupting these networks, the continuous re-emergence of darknet markets and the use of stealth operations demonstrate that vigilance and innovation are paramount.

The digital underworld is a dynamic environment, and as long as there are profits to be made from illicit activities, bad actors will find ways to exploit new technologies. The Huione case is a powerful testament to this reality, urging all stakeholders in the cryptocurrency ecosystem to remain vigilant and committed to fostering a safer, more transparent financial future.