U.S. Treasury Names Huione Group a Money Laundering Threat in $4B Financial Crime Crackdown

The United States government has taken a bold step to block a major company in Cambodia, Huione Group, from using the U.S. financial system. This comes after serious accusations that the company helped criminals move nearly $4 billion in dirty money over a period of a few years.

The U.S. Treasury Department’s Financial Crimes Enforcement Network, commonly referred to as FinCEN, has proposed designating Huione as a "principal money laundering risk" pursuant to Section 311 of the USA PATRIOT Act. Such designation is reserved for exceptional circumstances and empowers authorities to bar businesses from utilizing services provided by American banking institutions.

The Huione Group is alleged to have played a significant part in assisting cybercriminals conceal illicit funds. These funds include those linked to North Korean hackers as well as fraudulent activities across Southeast Asia. Often, these schemes deceive individuals into believing they are legitimate investment prospects, frequently duping average citizens into sending money which ultimately gets stolen.

The action proposed by FinCEN would make it illegal for American banks to hold accounts for Huione Group or work with them in any way. If approved, this would cut the company off from the U.S. banking system and make it harder for them to move money internationally. FinCEN says that Huione has helped criminals move money earned through online scams, stolen funds, and other illegal activities.

What is Huione Group and Why Does It Matter?

Huione Group is a large financial company based in Phnom Penh, Cambodia. It owns a mix of businesses involved in digital money, including payment platforms, cryptocurrency services, and insurance operations. FinCEN’s announcement specifically names companies such as Huione Pay PLC, Huione Crypto, and Haowang Guarantee as part of the group’s business network.

U.S. authorities stated that the Huione Group failed to adhere to appropriate regulations designed to prevent money laundering. The firm lacked robust anti-money laundering safeguards altogether or possessed exceedingly inadequate measures, facilitating illicit transactions that went unnoticed easily. Such protective protocols, referred to as "Know Your Customer" (KYC) guidelines, are mandated across numerous nations with the intention of ensuring that financial entities do not inadvertently assist criminal activities.

California resident Christopher Scott King admits to illegal gambling, tax evasion, and money laundering.

FinCEN claims that Huione’s services became the go-to place for criminal organizations and online scammers. They accuse the group of being the “marketplace of choice” for moving stolen money. Criminals used Huione’s platforms to hide the origins of funds, making the money look clean even though it came from illegal activities.

Even worse, the U.S. says that Huione Group knew there were problems. The company reportedly admitted that it had weak systems in place, especially after it was found to have taken money indirectly linked to North Korean cybercrime groups. These groups are known for stealing large sums of money through online hacks and scams.

How Deep Does This Go?

The U.S. government's probe into Huione uncovered that from August 2021 through January 2025, the organization handled approximately $4 billion in dubious financial activities. Around $37 million of these funds were linked to cyber thefts conducted by North Korean hackers. Additionally, another $36 million originated from fraudulent operations. cryptocurrency Investment schemes that deceived individuals into transferring funds with false assurances of substantial profits. Another $300 million was siphoned off through various types of cybercrimes, such as online deception and phishing attacks.

These offenses aren’t merely statistics; they involve actual individuals who suffered financial losses. According to U.S. authorities, American citizens were impacted, and Huione’s operations facilitated the transfer of illicit funds across boundaries with minimal supervision.

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In January, Cambodian authorities also intervened. The National Bank of Cambodia revoked Huione Pay’s operating license. Concurrently, Google eliminated an application named Huione Guarantee from Telegram. This app had been linked to fraudulent activities, as revealed through an inquiry conducted by a private blockchain analysis company.

The U.S. Treasury has released a proposal for public commentary lasting 30 days as part of the formal procedure preceding the potential implementation of this regulation. Should it be ratified, the new rule would severely restrict Huione Group from utilizing American banking services for financial transactions or storage. Such a development could significantly undermine the company’s operational capabilities.

This case illustrates how governmental bodies are intensifying their endeavors to monitor and obstruct businesses that facilitate criminals in concealing and transferring illicit funds via intricate monetary systems.

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