Unveiling the Shady Empire of Huione Group: The U.S. Crackdown on a Suspected Money Laundering Giant
U.S. authorities pursuing financial disconnection of Huione Group in Cambodia due to allegations of $4 billion money laundering.
The cat's out of the bag - the U.S. Financial Crimes Enforcement Network, also known as FinCEN, has issued a battle cry, targeting the $4 billion financial powerhouse, Huione Group. Based in Cambodia, this notorious conglomerate operates in various domains, including digital payment services, cryptocurrency platforms, and insurance operations.
Why the sudden interest? Since August 2021, Huione Group has been under scrutiny for allegedly laundering billions of dollars in illicit funds, but their alleged ties to North Korean cyberheists have brought them into the crosshairs of U.S. authorities.
FinCEN shared its concerns in a notice of proposed rulemaking under Section 311 of the USA PATRIOT Act. Accusing Huione Group of being a primary money laundering concern, they've positioned themselves to sever the group's connection to the U.S. financial system.
The Section 311 action allows the Secretary of the U.S. Treasury to pinpoint and neutralize specific money laundering and terrorist financing risks. If implemented, the proposed rule would bar U.S. financial institutions from opening or maintaining correspondent accounts with Huione Group members, such as Huione Pay PLC, Huione Crypto, and Haowang Guarantee.
U.S. Treasury Secretary, Scott Bessent, declared Huione Group acted as a "marketplace of choice" for no-good threat actors and criminal syndicates who've swindled billions of dollars from American citizens.
FinCEN alleges Huione has laundered at least $37 million tied to North Korean cyberheists, $36 million from crypto investment scams, and a staggering $300 million from other cyber scams during the specified timeframe. Moreover, the agency suspects Huione's insufficient anti-money laundering and know-your-customer protocols were exploited by threat actors.
Prior to these allegations, Huione Pay's license was revoked by the National Bank of Cambodia in January, and Google removed the Telegram-based app, Huoine Guarantee, following an Elliptic investigation that exposed its illicit connections.
As the dust settles, the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) has left the door open for public comment on the matter for 30 days following its publication in the Federal Register.
In an exclusive conversation with Decrypt, FinCEN welcomed queries on this topic. However, Huione Group, being evasive with the media, remains tight-lipped, lacking a publicly available email address.
- The U.S. Financial Crimes Enforcement Network (FinCEN) has targeted the cryptocurrency platforms of Huione Group, a $4 billion financial powerhouse based in Cambodia.
- FinCEN alleges that Huione Crypto, a member of the Huione Group, has laundered at least $37 million tied to North Korean cyberheists.
- digital assets like Ethereum (ETH) are not exempt from being used in money laundering activities, as Huione Group has allegedly laundered money from crypto investment scams worth $36 million.
- The importance of crypto exchanges implementing strong anti-money laundering and know-your-customer protocols is highlighted in the case of Huione Group, whose insufficient protocols were allegedly exploited by threat actors.
- General-news outlets have been reporting on the suspected money laundering activities of Huione Group, with recent allegations totaling over $343 million laundered through the group's various businesses, including cryptocurrency operations.
- The alleged crimes committed by Huione Group have put a spotlight on the need for crypto investments to prioritize transparency, as the group's business model is under scrutiny for criminal activities.
