Reported by FinCEN

(Summarized version below)

The Financial Crimes Enforcement Network (FinCEN) has issued a Notice of Proposed Rulemaking (NPRM) designating the Huione Group, a Cambodia-based financial services conglomerate, as a primary money laundering concern under Section 311 of the USA PATRIOT Act. This designation stems from FinCEN’s determination that the Huione Group has knowingly facilitated illicit financial activities involving cybercrime, organized crime, and sanctions evasion. The proposed rule would prohibit U.S. financial institutions from maintaining correspondent accounts on behalf of the Huione Group, thereby cutting off its access to the U.S. financial system to protect national security and the integrity of global financial networks.

FinCEN’s investigation found that the Huione Group, through its subsidiaries—Huione Pay PLC, Huione Crypto, and Haowang Guarantee—operates a coordinated network that launders proceeds from cyber heists and crypto investment scams, often referred to as “pig butchering” schemes. These scams, linked to Southeast Asian transnational criminal organizations, rely on human trafficking victims to operate fraudulent crypto investment platforms. Huione Group’s infrastructure supports the seamless conversion of stolen or fraudulently obtained digital assets into fiat currency, making it a “one-stop shop” for money laundering and cybercriminal activity.

Notably, Huione Group has processed millions of dollars in stolen cryptocurrency tied to the North Korean Lazarus Group, a state-sponsored hacking collective sanctioned by the U.S. Department of the Treasury. Blockchain analysis by FinCEN identified significant transfers of illicit funds from North Korean cyber operations into Huione-controlled wallets, including proceeds from high-profile heists such as the DMM and Atomic Wallet breaches. Furthermore, FinCEN found evidence that Huione Pay PLC officials maintained direct relationships with DPRK operatives, raising serious concerns about the group’s complicity in sanctions evasion and support for weapons of mass destruction proliferation.

The NPRM also highlights the Huione Group’s lack of meaningful anti-money laundering (AML) and know-your-customer (KYC) controls. Despite public scrutiny and the removal of incriminating content from its websites, the group has failed to implement or disclose any substantive compliance measures. Its proprietary stablecoin, USDH, is advertised as “non-freezable,” creating an untraceable ecosystem for moving funds outside of regulated channels. These features further enable criminal actors to exploit the platform without fear of detection or asset seizure.

FinCEN’s proposed action underscores the serious threat posed by the Huione Group to the international financial system. By severing its access to U.S. correspondent accounts, the United States aims to disrupt the group’s ability to facilitate illicit finance and to signal a broader commitment to countering financial crime linked to cyber-enabled fraud, human trafficking, and rogue regimes. Public comments on the proposed rule are invited within 30 days of its publication in the Federal Register.

For original source, download: