The US Treasury Department wants to block the Cambodia-based Huione Group from accessing the US banking system, accusing it of helping North Korea’s state-backed Lazarus Group to launder its crypto.

The Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed on May 1 to prohibit US financial institutions from opening or maintaining correspondent or payable-through accounts for or on behalf of the Huione Group.

Huione Group has established itself as the “marketplace of choice for malicious cyber actors” like the Lazarus Group, who have “stolen billions of dollars from everyday Americans,” US Treasury Secretary Scott Bessent said in a May 1 statement.

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

Huione Group has set up a network of businesses, which includes payment service platform Huione Pay PLC, the crypto exchange Huione Crypto, and Haowang Guarantee, an online marketplace offering illicit goods and services.

Although the conglomerate doesn’t have correspondent accounts with US financial institutions, it has accounts with foreign firms with US correspondent accounts, the Treasury’s FinCEN noted in its rulemaking submission.

The proposed rule is subject to a 30-day public comment period before it can take effect.

Source: Chainalysis

Huione expanded into sophisticated cybercrime network

FinCEN claimed that Huione Group has laundered at least $4 billion worth of illicit proceeds between August 2021 and January 2025, including more than $36 million from crypto pig butchering scams.

At least $37 million worth of the crypto laundered has been linked to North Korea’s “cyber heists,” the Treasury said.

Haowang Guarantee has made Huione Group a “one stop shop” for criminals to launder crypto obtained through illicit activities, and ultimately convert it to fiat currency, the Treasury said.

Related: North Korean crypto attacks rising in sophistication, actors — Paradigm

The conglomerate has also created a US dollar-pegged stablecoin, the US Dollar Huione (USDH), which FinCEN said cannot be frozen and helps to carry out money laundering activities.

The National Bank of Cambodia has stated that payment firms aren’t allowed to deal or trade digital assets in the country and had revoked the company’s local banking license in March.

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