The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has taken action against the Huione Group, a Cambodia-based financial conglomerate, for its alleged involvement in crypto laundering activities linked to the Lazarus Group, a North Korean cybercrime organization.
According to a recent announcement by FinCEN, the Huione Group has been identified as a primary money laundering concern and a critical node for laundering proceeds from cyber heists carried out by the Lazarus Group. The Group has reportedly fraudulently obtained billions of dollars from U.S. citizens through romance scams since August 2021.
In response to these findings, FinCEN has proposed prohibiting U.S. financial institutions from opening or maintaining correspondent or payable-through accounts for or on behalf of the Huione Group. This action is aimed at cutting off the Group’s access to the U.S. financial system and preventing further laundering of illicit funds.
The Huione Group has been implicated in promoting fraudulent investments and ‘pig butchering’ schemes, which have facilitated bad actors in defrauding individuals through social media platforms. The Group has become a marketplace of choice for cybercriminals, enabling them to launder their ill-gotten gains.
According to the FinCEN report, the Huione Group has laundered at least $4 billion worth of illicit proceeds between August 2021 and January 2025. A significant portion of these funds, including $37 million from North Korean cyber heists and $36 million from crypto investment scams, have been traced back to the Group’s activities.
In addition, the Huione Group has been found to be selling items used in cyber scams, as well as providing payment services in fiat currency and developing stablecoin. The Group’s online marketplace has facilitated transactions exceeding $11 billion through online scams in Southeast Asia, according to research conducted by Elliptic.
The proposed action by FinCEN underscores the U.S. government’s commitment to disrupting the operations of malicious cyber actors and preventing them from profiting from criminal schemes. By severing the Huione Group’s access to correspondent banking, authorities hope to hinder their ability to launder illicit funds and deter future criminal activities.
Overall, the FinCEN action against the Huione Group serves as a warning to financial institutions and individuals involved in money laundering and illicit activities. It highlights the importance of vigilance and cooperation in combating financial crimes and protecting the integrity of the global financial system.