Huione Pay Freezes Withdrawals in Sudden Shutdown - Crypto Chaos Erupts

Another day, another crypto payment platform hits the wall. Huione Pay's abrupt shutdown has left users scrambling as withdrawal gates slam shut.

The Frozen Funds Fallout

No warning, no wind-down—just a hard stop. Customers logging in found their assets locked, with zero official communication on when—or if—access returns. The silence from Huione speaks volumes, a classic move in the playbook of financial distress.

Trust Evaporates Overnight

This isn't a technical glitch; it's a crisis of confidence. The platform's collapse shreds the thin veneer of stability, proving yet again that in crypto, your liquidity is only as good as the company's last board meeting. A stark reminder that when the music stops, you're not always holding a chair.

The Ripple Effect

Merchants and everyday users are caught in the crossfire, their operational capital now hostage to Huione's internal meltdown. The incident sends a chilling signal to the broader fintech sector—rapid growth means little without resilient infrastructure and, dare we say, actual reserves.

So, another 'stable' platform proves anything but. In the relentless pursuit of disruption, some companies seem to have mastered only one thing: disrupting their customers' access to their own money. How very innovative.

Crowds gather as the company cites liquidity pressure

When the shutdown became effective, masses of people gathered around the main office of Huione Pay on Norodom Boulevard. Most of the people who gave speeches in the scene claimed that they had accounts with the platform and could not access the funds after the abrupt stop. Some of them complained that they were not notified in advance and feared incurring long-term financial losses.

A statement printed on the glass doors of the building caught the attention of reporters. The Chinese-written notice confirmed that Huione Pay was facing a run on the bank and could not handle the number of withdrawals being made.

The firm has outlined a deferred repayment scheme, offering customers two options. It will enable users to deposit their money in high-yield wealth products, resulting in full repayment of the principal within 18 months, accompanied by monthly interest. Individuals who reject the investment option will have the option to withdraw money in monthly installments after six months.

The notification also reaffirmed that all Huione Pay service locations would be closed during the suspension period. The company claimed that recent changes in the external market environment had led to an influx of attempted withdrawals, placing the company under strain in terms of liquidity and resulting in delayed repayments.

Huione Pay shutdown follows regulatory actions in Cambodia and abroad

The freeze on operations occurs several months after increased pressure is applied to Huione Pay and its parent company, the Huione Group, in the regulatory sphere. In June 2024, the National Bank of Cambodia suspended Huione Pay’s license for violating financial regulations in the country. The government ordered the company to stop its payment operations, but it was not publicly stated what the violations were.

In May 2024, the Huione Group was again subject to international scrutiny when the U.S. Treasury Department Financial Crime Enforcement Network (FinCEN) listed the group as a money-laundering institution. The order instructed U.S. financial institutions to terminate their correspondent banking and money transmission services related to the group. FinCEN accused the Huione Group of providing laundering services to transnational fraud networks based in North Korea and Southeast Asia, including schemes involving online theft and cryptocurrency investment fraud.

Private-sector platforms made other measures. In November, cryptocurrency exchange Dunamu, which operates Upbit in South Korea, announced that it had shut down over 200 accounts linked to organizations associated with the Huione network in Cambodia. Upbit claimed that internal monitoring systems had uncovered suspicious virtual-asset transactions to transfer funds via the exchange.

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