U.S. Slams Cambodia’s Huione Group Over $4B Crypto Laundering Racket—Because Banks Were Too Slow to Catch On

U.S. regulators just dropped the hammer on Huione Group, a Cambodian conglomerate accused of running a $4 billion crypto money laundering operation. Because nothing says ’financial innovation’ like old-school crime with a blockchain veneer.

The DOJ and FinCEN allege Huione used a mix of shell companies and privacy coins to wash dirty money—proving once again that where traditional finance fails, crypto ’disrupts.’

Bonus jab: At least someone’s hitting volume targets in this bear market.

• Huione Group processed $98B in crypto through illicit activities.
• U.S. Treasury links Huione to North Korean hackers and fraud rings.
• Huione’s USDH stablecoin is designed to bypass financial controls.

The U.S Treasury Department has disconnected Cambodia’s Huione Group from the U.S financial system. The U.S sanctioned Huione Group for their involvement in crypto money laundering operations. The Financial Crimes Enforcement Network (FinCEN) states that  Huione laundered about $4 billion in crypto since 2021 which includes funds from North Korean hackers and online fraud.

Huione Group, which was established in 2014, is accused of processing $98 billion in crypto money across various illegal transaction channels. The company has faced increased scrutiny for its connection to North Korean hackers. Huione’s marketplace has become famous for criminal syndicates operations such as money laundering and stolen data.

Huione’s USDH Stablecoin, Aids CyberCrime

In January 2025, Huione launched its USDH stablecoin to bypass traditional currency restrictions. USDH is “unfreezable” unlike other stablecoins which enables it to evade measures to freeze criminal funds. Authorities have expressed concerns about the initiative because it enables criminals to transfer funds without  surveillance.

FinCEN has decided to cut off Huione’s access to the U.S. financial system because it allegedly laundered funds from North Korea’s Lazarus Group. Lazarus Group has conducted major heists such as the $1.4 billion Bybit hack earlier this year.

Additionally, Huione has processed funds from “pig butchering” online scams. The FinCEN investigation confirmed that Huione laundered $36 million worth of cryptocurrency from these scams. The Treasury Department named Huione Group as a “primary money laundering concern” because of its role in these crimes.

Huione transfers the illicit funds through its Huione Pay and Huione Crypto platforms. These platforms provide users with services such as currency exchanges and the sale of fraud tools. Huione has defied warnings from authorities and continued to offer services such as untraceable digital assets.

U.S Crackdown on Crypto Crimes

The crackdown on Huione is part of the U.S government’s initiative to curb international crypto crime. The move marks a major step in the fight against money laundering and blockchain-based financial crimes. 

The FinCEN proposal is open for public feedback for 30 days. If approved, the proposal would prevent the Huione Group from opening or holding bank accounts in U.S. firms. This regulatory move could massively disrupt Huione’s financial operations.