- FinCEN alleges Huione laundered $4B, including $37M tied to North Korea’s Lazarus Group.
- U.S. Treasury proposes rule under Patriot Act to block Huione’s banking access.
- Cambodia revoked Huione’s license in March 2025 over crypto-related legal breaches.
The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has proposed new restrictions against Cambodia-based Huione Group. The proposal seeks to block the entity from accessing the American financial system due to money laundering allegations. According to the filing, the group laundered over $4 billion in illegal funds, including assets linked to North Korean hackers.
FinCEN Targets Huione Under Patriot Act
On May 1, FinCEN invoked Section 311 of the Patriot Act to begin a rulemaking process targeting Huione Group. If passed, the rule would prohibit U.S. financial institutions from opening or maintaining correspondent accounts for Huione and its affiliates. The filing stated that Huione has no direct accounts in the United States but operates through foreign entities.
FinCEN claimed that Huione served as a laundering channel for over $37 million in assets linked to North Korea’s Lazarus Group. The entity also processed funds from pig butchering scams and other online fraud schemes across Southeast Asia.
Authorities detailed Huione’s extensive network, which includes payment platform Huione Pay PLC, Huione Crypto exchange, and Haowang Guarantee. The latter, a Telegram-based marketplace, was described by the United Nations Office on Drugs and Crime as a central hub for cyber scam infrastructure.
The Treasury Department also accused the group of operating services used by fraud actors to convert digital currencies into fiat. These services included stablecoins and fiat payment systems integrated into criminal operations. Secretary of the Treasury Scott Bessent stated the proposed rule would cut Huione’s banking access and disrupt money laundering efforts.
Cambodian Actions and Regulatory Breaches
In March 2025, the National Bank of Cambodia revoked Huione’s local license due to its violation of domestic payment rules. Authorities clarified that payment providers are not permitted to engage in virtual asset transactions under Cambodian law. Huione’s continued crypto operations placed it in breach of these regulations.
Furthermore, blockchain analytics firm Elliptic noted Huione had launched a stablecoin to avoid regulatory detection. This move reportedly enabled Huione to bypass restrictions imposed by traditional banking institutions and asset seizure protocols.
The proposed FinCEN rule is now open for public comment for 30 days before any final determination is made. Regulators warned that similar groups offering competing illicit services in the region could pose ongoing challenges. The Treasury continues monitoring cybercrime activity with a focus on financial channels supporting North Korean hackers.
