US blacklists Cambodia’s Huione Group over $4B money laundering allegations

The United States (US) blacklisted Cambodia’s Huione Group for laundering $4 billion in crypto scams linked to North Korean hackers.

US sanctions Cambodia-based firm amid $4 billion fraud linked to North Korea

The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has designated Huione Group, a Phnom Penh-based financial conglomerate, as a “primary money laundering concern,” accusing it of facilitating over $4 billion in illicit transactions tied to North Korea and Southeast Asian crime networks.

“For years, Huione Group has laundered illicit proceeds from cybercrimes,” FinCEN stated in its official notice, filed under Section 311 of the USA PATRIOT Act. 

The designation enables the US to ban all domestic financial institutions from maintaining correspondent accounts with Huione Group or its subsidiaries.

FinCEN’s investigation identified Huione Pay PLC, Huione Crypto, and Haowang Guarantee as major conduits for laundering activities.

The entities are accused of serving criminal enterprises through lax internal controls and insufficient Know Your Customer (KYC) procedures.

“Huione has consistently failed to implement adequate anti-money laundering controls. Its platforms enable the movement of billions in illicit funds fueling cyber scams and endangering global financial security,” said FinCEN Director Andrea Gacki.

Investigation unveils criminal ties to North Korea 

Investigators have directly linked Huione’s platforms to cybercriminal activity between August 2021 and January 2025.

FinCEN data shows that approximately $4 billion was processed through suspicious accounts, including:

• $37 million tied to North Korean cyber heists
• $36 million from crypto investment scams
• Over $300 million from various online fraud operations

Huione allegedly acknowledged that its internal compliance procedures required “significant improvements,” particularly after it was found to be transmitting funds originating from DPRK-linked cyber operations.

“The system has turned into the preferred location where criminal organizations conduct illegal operations involving billions of stolen money from American citizens,” said Treasury Secretary Scott Bessent.

In response, the National Bank of Cambodia revoked Huione Pay’s operating license in January 2025. Tech giant Google followed suit in July 2024 by removing Huione Guarantee from its app platform after blockchain analytics firm Elliptic traced its networks to illicit activity.

Despite mounting evidence, Huione Group has yet to issue a public statement and continues to evade media contact.

What’s next?

The proposed US sanctions against Huione could send shockwaves across crypto exchanges and trading platforms globally. 

After the SEC dropped a flurry of charges against major crypto firms like Robinhood, Coinbase and Uniswap, FinCEN’s latest sanction on Cambodia-based Huione Group signals a regulatory will to push against unregulated crypto intermediaries, particularly those operating in Southeast Asia.

While FinCEN has not disclosed whether cryptocurrency transactions will face fresh regulations, the Treasury recently increased transaction scrutiny for cross-border payments above $200, prompting speculation of further restrictions.