US Focuses on Huione Group in Effort to Dismantle $4 Billion Cryptocurrency Money Laundering Scheme

The Financial Crimes Enforcement Network (FinCEN) of the US Treasury has put forth a proposal to prevent the Huione Group from accessing the US financial system, as noted in a statement released on May 1.

If this proposal is accepted, it would bar financial institutions in the United States from opening or managing accounts for Huione Group and its subsidiaries.

US officials have identified Huione Group as a significant facilitator in transferring illicit funds associated with North Korea and various organized crime syndicates in Southeast Asia. The group is alleged to have played a role in channeling money from cryptocurrency scams, including fraudulent investment schemes known as “pig butchering” scams.

Treasury Secretary Scott Bessent stated that this measure is vital to cutting off Huione’s access to international banking channels and diminishing its capacity to launder illegally acquired funds.

He remarked:

“Huione Group has positioned itself as a primary marketplace for harmful cyber actors like North Korea and criminal organizations, who have swindled billions from ordinary Americans. The proposed action today aims to cut off Huione Group’s access to correspondent banking, thereby undermining these entities’ ability to process their illicit profits.”

In excess of $4 billion laundered

According to FinCEN’s investigation, Huione Group is believed to have handled over $4 billion in potentially suspicious transactions from August 2021 to January 2025.

Among this sum, approximately $37 million is said to have originated from hacks linked to North Korea, $36 million from cryptocurrency scams, and nearly $300 million from various forms of online fraud.

US authorities contend that the group runs a complex network of entities that perform various functions in its money laundering schemes.

This includes Huione Pay, a processor of fiat payments; Huione Crypto, a service for virtual assets; and Haowang Guarantee, a marketplace involved in illegal goods and services. The network has also introduced its stablecoin to facilitate transactions across these platforms.

Despite clear signs of extensive misuse, Huione entities reportedly lack effective anti-money laundering (AML) and know-your-customer (KYC) protocols. FinCEN has highlighted that Huione did not detect suspicious activities, including one case in which it accidentally received funds associated with a North Korean cyber operation.

The operations of the platform seem to elude standard regulatory scrutiny, much like historical darknet sites such as Silk Road.