FinCEN Moves to Ban Huione from U.S. Financial Networks Over Alleged North Korean Crypto Laundering

U.S. regulators draw a hard line—Huione faces expulsion from American payment rails following accusations of facilitating illicit crypto flows tied to Pyongyang.

The Crackdown:
The Financial Crimes Enforcement Network (FinCEN) isn’t mincing words. Its proposed ban targets Huione’s access to dollar settlements, citing ’systemic exploitation’ by DPRK-linked actors laundering stolen digital assets.

The Backstory:
Blockchain sleuths traced $200M+ in suspicious transactions through Huione-linked wallets—funds allegedly tied to Lazarus Group hacks. Now Washington’s playing financial whack-a-mole with yet another offshore exchange.

The Fallout:
While Huione claims ’full compliance,’ crypto markets barely blinked—another reminder that when it comes to dirty money, the industry’s ’self-regulation’ often amounts to speed bumps on a money highway.

FinCEN Alleges Crypto Heists, Scams, and Stablecoin Abuse

The Treasury alleges that Huione played a significant role in laundering over $4 billion from 2021 to 2025, including $37 million allegedly linked to the North Korean hacking collective Lazarus Group.

According to FinCEN’s statement, Huione Group facilitated laundering for cybercrimes ranging from crypto investment scams to high-profile hacking incidents.

The group reportedly supported transnational criminal organizations operating out of Southeast Asia, offering services including crypto exchanges, online payment processing, and a marketplace catering to illicit cyber actors.

The US Treasury emphasized that such operations allowed Huione to become a major hub for criminal finance activity, with its platforms being routinely used to funnel proceeds from cyber theft.

One of the group’s newest developments includes launching its own stablecoin. Blockchain analytics firm Elliptic previously flagged the move as a response to increasing regulatory crackdowns, suggesting it was intended to bypass asset freezes and financial surveillance.

FinCEN noted that the stablecoin, combined with Huione’s fiat and cryptocurrency services, enabled high levels of transactional anonymity, thereby complicating efforts to trace illicit finance.

Treasury Secretary Scott Bessent stated that the proposed measure aims to “degrade these groups’ ability to launder their ill-gotten gains” by severing access to the US banking system.

The move also follows findings by the United Nations Office on Drugs and Crime, which characterized Huione’s Haowang marketplace as a comprehensive ecosystem supporting cybercriminal infrastructure. According to the UN report, Haowang provides everything from fake documentation to scam toolkits and payment systems.

International Response and Enforcement Outlook

The proposal to restrict Huione comes amid growing global concern over the rise in crypto-related financial crime. US officials say that cutting off Huione’s access to the American banking system would send a strong signal to similarly structured platforms operating under the radar.

However, the UN has also warned that similar groups continue to emerge across Southeast Asia, potentially undermining enforcement efforts targeting Huione alone. The public comment period for FinCEN’s proposed rule will remain open for 30 days following publication in the Federal Register.

In the meantime, the Treasury is expected to continue working with international partners and private-sector institutions to track digital asset flows and clamp down on networks facilitating cyber-enabled crime.

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