Huione Group, a Cambodian conglomerate linked to illicit activities, faces potential exclusion from the U.S. financial system as the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) considers labeling it as a “primary money laundering concern.”
The proposed rule by FinCEN aims to prevent U.S. financial institutions from engaging in any correspondent or payable-through accounts with Huione Group, effectively cutting off its access to the American banking network.
Treasury Secretary Scott Bessent expressed that this action would hinder Huione Group’s ability to launder illicit funds, especially considering its reported involvement in supporting cybercriminal operations, including aiding North Korea’s Lazarus Group in laundering stolen crypto.
Although Huione Group does not directly bank in the U.S., FinCEN alleges that it operates through overseas entities that have ties to the American financial system, enabling it to move illicit funds surreptitiously.
Authorities claim that Huione Group facilitated the transfer of over $4 billion in illicit funds between August 2021 and January 2025, with a significant portion of these funds originating from online scams like pig butchering schemes.
Of particular concern is Huione Group’s diverse network of businesses, such as Huione Pay, a payment services company; Huione Crypto, a virtual asset platform; and a Telegram-based marketplace that rebranded to Haowang Guarantee. Additionally, FinCEN highlighted Huione’s stablecoin, USDH, which is pegged to the U.S. dollar and may be used to circumvent regulatory oversight.
Furthermore, FinCEN noted that Huione Group’s claim that USDH cannot be frozen poses a significant risk, allowing clients to move or store crypto assets without fear of law enforcement intervention. This service effectively provides a safe haven for illicit funds to be converted into fiat currency without detection.
In response to suspicious activities, Tether froze approximately $30 million in USDT linked to Huione accounts in July 2024, potentially prompting the launch of USDH as an alternative means of fund transfer.
The proposed rule is currently open for public comment for 30 days before potential implementation. Earlier in July 2024, blockchain analytics firm Elliptic raised concerns about Huione Group, identifying it as a central hub for cybercriminal activities in Southeast Asia.
Elliptic’s report described Huione’s marketplace as the largest of its kind, offering services for money laundering, scam website tools, and even human trafficking-related activities through thousands of Telegram channels. While the platform’s mobile app was removed from the Google Play Store due to criminal allegations, it remains accessible on the Apple App Store.