The U.S. Treasury Department is targeting the Cambodia-based Huione Group over allegations of laundering billions in illicit cryptocurrency, including funds connected to North Korea’s Lazarus Group. They propose cutting the firm off from the American financial system.
Announced on May 1 by the Treasury’s Financial Crimes Enforcement Network (FinCEN), the proposed rule would bar U.S. financial institutions from maintaining or opening correspondent or payable-through accounts on behalf of the Huione Group. Though the company reportedly lacks direct ties to American banks, it allegedly operates through foreign entities that do — a loophole the Treasury is now looking to close.
Treasury Secretary Scott Bessent described the group as a major enabler of cybercrime, branding Huione as the “marketplace of choice for malicious cyber actors.” According to Bessent, groups like Lazarus — accused of stealing billions from U.S. citizens — have used Huione’s network to funnel stolen funds back into the global economy.
Central to these operations is Haowang Guarantee, an illicit online marketplace under the Huione umbrella. The Treasury claims it serves as a crypto money-laundering hub for criminals, allowing the seamless conversion of stolen digital assets into fiat currency. Other subsidiaries, including payment processor Huione Pay PLC and exchange platform Huione Crypto, are also under scrutiny.
One of the more troubling findings is Huione’s creation of its stablecoin, the U.S. dollar Huione (USDH). FinCEN claims the token cannot be frozen, making it a potential tool for laundering funds. They allege that between August 2021 and January 2025, Huione laundered over $4 billion in illicit funds, including $36 million from crypto scams and $37 million connected to North Korean cyber thefts.
According to Chainalysis, The U.S. proposal is open to a 30-day public comment period. If enacted, it would significantly escalate U.S. efforts to clamp down on international crypto laundering operations and disrupt financial networks supporting hostile state actors.
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