The US Treasury Department wants to block the Cambodia-based Huione Group from accessing the US banking system, accusing it of helping North Korea\u2019s state-backed Lazarus Group to launder its crypto.<\/p>\n
The Treasury\u2019s Financial Crimes Enforcement Network (FinCEN) proposed<\/a> on May 1 to prohibit US financial institutions from opening or maintaining correspondent or payable-through accounts for or on behalf of the Huione Group.<\/p>\n Huione Group has established itself as the \u201cmarketplace of choice for malicious cyber actors\u201d like the Lazarus Group,<\/a> who have \u201cstolen billions of dollars from everyday Americans,\u201d US Treasury Secretary Scott Bessent<\/a> said in a May 1 statement.<\/p>\n \u201cToday\u2019s proposed action will sever Huione Group\u2019s access to correspondent banking, degrading these groups\u2019 ability to launder their ill-gotten gains.\u201d<\/p>\n Huione Group has set up a network of businesses, which includes payment service platform Huione Pay PLC, the crypto exchange Huione Crypto, and Haowang Guarantee,<\/a> an online marketplace offering illicit goods and services.<\/p>\n Although the conglomerate doesn\u2019t have correspondent accounts with US financial institutions, it has accounts with foreign firms with US correspondent accounts, the Treasury\u2019s FinCEN noted<\/a> in its rulemaking submission.<\/p>\n The proposed rule is subject to a 30-day public comment period before it can take effect.<\/p>\n Source: <\/em>Chainalysis<\/em><\/a><\/p>\n FinCEN claimed that Huione Group has laundered at least $4 billion worth of illicit proceeds between August 2021 and January 2025, including more than $36 million from crypto pig butchering scams<\/a>.<\/p>\n At least $37 million worth of the crypto laundered has been linked to North Korea\u2019s \u201ccyber heists,\u201d the Treasury said.<\/p>\n Haowang Guarantee<\/a> has made Huione Group a \u201cone stop shop\u201d for criminals to launder crypto obtained through illicit activities, and ultimately convert it to fiat currency, the Treasury said.<\/p>\n Related: <\/strong><\/em>North Korean crypto attacks rising in sophistication, actors \u2014 Paradigm<\/strong><\/em><\/a><\/p>\n The conglomerate has also created a US dollar-pegged stablecoin, the US Dollar Huione<\/a> (USDH), which FinCEN said cannot be frozen and helps to carry out money laundering activities.<\/p>\n The National Bank of Cambodia has stated that payment firms aren\u2019t allowed to deal or trade digital assets in the country and had revoked the company\u2019s local banking license in March.<\/p>\nHuione expanded into sophisticated cybercrime network<\/h2>\n