The U.S. Treasury Department is trying to block the Cambodia-based Huione Group from accessing the U.S. banking system, accusing it of helping North Korea’s state-sponsored Lazarus Group in laundering cryptocurrency.
On May. 1, the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed a rule that would prevent U.S. financial institutions from opening or maintaining accounts for the Huione Group, either directly or through third parties.
Huione Group has become the go-to platform for cybercriminals, including notorious groups like Lazarus, who have stolen billions of dollars from ordinary Americans, according to a statement from U.S. Treasury Secretary Scott Bessent on May. 1.
Today’s proposed action will sever Huione Group’s access to correspondent banking, degrading these groups’ ability to launder their ill-gotten gains.
FinCEN: Huione enabled $4B in illicit transactions
Huione Group has built a network of businesses, including the payment service platform Huione Pay PLC, the cryptocurrency exchange Huione Crypto, and Haowang Guarantee, an online marketplace that deals in illegal goods and services.
Though the conglomerate doesn’t have direct accounts with US banks, but it does have accounts with foreign firms that maintain US correspondent accounts, FinCEN noted in its rulemaking submission.
FinCEN has stated that Huione Group laundered at least $4 billion in illicit funds between Aug. 2021 and Jan. 2025, which includes over $36 million from crypto “pig butchering” scams. The U.S. Treasury has stated that at least $37 million of the laundered cryptocurrency is connected to North Korea’s cyber thefts.
Haowang Guarantee has turned Huione Group into a “one-stop shop” for criminals to launder cryptocurrency earned through illegal activities, eventually converting it into traditional money.
The company also launched a stablecoin pegged to the US dollar, called the US Dollar Huione (USDH). FinCEN says that criminals use it for money laundering because it can’t be frozen.
The National Bank of Cambodia announced that it will not allow payment companies to handle or trade digital assets within the country. In addition, it revoked the company’s local banking license in March.
