US Treasury Unleashes Action Against Huione Group Over Alleged Crypto Crime
In a significant move targeting illicit financial flows, the US Treasury Department has set its sights on the Cambodia-based Huione Group. The Treasury alleges that this conglomerate is deeply involved in crypto crime and money laundering, particularly on behalf of North Korea’s notorious Lazarus Group. This action signals a hardening stance by US authorities against entities facilitating cybercrime through digital assets.
Why the US Treasury is Targeting Huione Group
The US Treasury’s Financial Crimes Enforcement Network (FinCEN) announced a proposed rule on May 1st aimed at severing Huione Group’s access to the US banking system. Specifically, FinCEN wants to prohibit US financial institutions from maintaining correspondent or payable-through accounts for or on behalf of Huione Group.
US Treasury Secretary Scott Bessent stated that Huione Group has become a primary conduit for malicious actors like the Lazarus Group, who are responsible for stealing billions globally. He emphasized that cutting off correspondent banking access is intended to degrade these groups’ ability to launder their ill-gotten gains.
Allegations of Massive Money Laundering
FinCEN’s submission details serious allegations regarding Huione Group’s activities. They claim the group has laundered a staggering amount of illicit proceeds:
- At least $4 billion laundered between August 2021 and January 2025.
- Over $36 million from crypto pig butchering scams.
- At least $37 million linked directly to North Korea’s state-sponsored cyber heists.
The Treasury describes Huione Group as a “one stop shop” for criminals, facilitating the laundering of crypto obtained through illicit means and converting it to fiat currency. This extensive money laundering operation underscores the scale of the problem authorities are trying to address.
Huione Group’s Network and Role in Crypto Crime
The Huione Group operates a network of businesses designed to facilitate these activities. Key components include:
- Huione Pay PLC: A payment service platform.
- Huione Crypto: A cryptocurrency exchange.
- Haowang Guarantee: An online marketplace allegedly offering illicit goods and services.
While Huione Group may not have direct accounts with US financial institutions, they reportedly hold accounts with foreign firms that *do* have US correspondent accounts. This allows them indirect access to the US financial system, which the Treasury now seeks to block.
Furthermore, the group created a US dollar-pegged stablecoin, US Dollar Huione (USDH), which FinCEN claims is difficult to freeze and aids in their money laundering activities. Adding to their woes, the National Bank of Cambodia revoked Huione’s local banking license in March, stating that payment firms are not permitted to deal in digital assets in the country.
What Happens Next? The Public Comment Period
The proposed rule by the US Treasury is not immediately final. It is subject to a 30-day public comment period, during which interested parties can submit feedback. After this period, FinCEN will review comments before the rule can take effect. This process allows for transparency and input before implementing significant regulatory actions.
Conclusion: A Blow Against Illicit Crypto Activity
The US Treasury‘s proposed action against Huione Group is a clear signal that facilitating crypto crime and money laundering for entities like the Lazarus Group will face severe consequences. By targeting access to the US financial system, authorities aim to disrupt major pipelines for illicit funds, highlighting the ongoing global effort to combat the misuse of cryptocurrencies for criminal purposes.
