U.S. Treasury Moves to Sever Huione Group from Global Banking Over $4B Crypto Laundering Claims

U.S. Treasury Moves to Sever Huione Group from Global Banking Over $4B Crypto Laundering Claims

Cambodian Conglomerate Accused of Laundering Billions Through Crypto Ties to North Korean Hackers

The U.S. Treasury Department is taking aggressive steps to block Huione Group, a Cambodia-based financial conglomerate, from accessing the American banking system, citing deep involvement in international crypto crime and money laundering.

$4 Billion in Illicit Funds Allegedly Laundered

In a May 1 proposal, the Treasury’s Financial Crimes Enforcement Network (FinCEN) accused Huione of helping North Korea’s Lazarus Group—a state-sponsored hacking collective—launder more than $4 billion in illicit funds between August 2021 and January 2025. This includes over $36 million linked to crypto scams such as “pig butchering” schemes, and at least $37 million from North Korean cyber heists.

“Today’s proposed action will sever Huione Group’s access to correspondent banking, degrading these groups’ ability to launder their ill-gotten gains,” said Treasury Secretary Scott Bessent.

Crypto Platforms, Stablecoin, and a Marketplace for Criminal Services

Huione’s digital empire spans multiple business fronts. It operates:

• Huione Pay PLC, a payment platform

• Huione Crypto, a cryptocurrency exchange

• Haowang Guarantee, an online marketplace allegedly offering illegal goods and services

This web of businesses has made Huione a preferred destination for cybercriminals, the Treasury alleges, calling the group a “one-stop shop” for laundering digital assets and converting them into fiat currency.

FinCEN also drew attention to a USD-pegged stablecoin issued by Huione, dubbed USDH, which it claims is non-freezable and enables anonymous laundering activity.

Cambodia Responds, But Concerns Linger

Despite not having direct ties to U.S. banks, Huione accesses U.S. financial channels via foreign intermediaries, prompting FinCEN to propose blocking U.S. financial institutions from maintaining correspondent or payable-through accounts connected to the group.

In March, the National Bank of Cambodia revoked Huione’s local banking license, stating that digital asset activity is not permitted for payment firms in the country.

The FinCEN proposal is now open to public comment for 30 days before final implementation.

Lazarus Group and the Rise of State-Backed Crypto Heists

The Lazarus Group is notorious for high-profile cyberattacks, including crypto exchange breaches and decentralized finance exploits. Its link to Huione deepens global concern that crypto infrastructure is being weaponized by hostile state actors to evade sanctions and finance illicit operations.

This case may serve as a watershed moment for regulators, signaling a shift toward aggressively targeting crypto-linked entities that operate across loosely regulated jurisdictions.