U.S. Treasury seeks to block Huione Group over North Korea laundering ties
By: cryptosheadlines|2025/05/02 18:45:01
0
Share
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com The U.S. Department of the Treasury has proposed a federal rule to sever the Cambodia-based Huione Group’s access to the U.S. financial system, citing the company’s alleged involvement in laundering billions of dollars linked to North Korean cybercrime and online fraud schemes.According to the Treasury’s Financial Crimes Enforcement Network (FinCEN), Huione and its affiliates have facilitated significant illicit transactions since August 2021. These transactions are connected to online romance and investment scams.The proposed action will make it more difficult for cybercriminals such as Lazarus Group to launder their illicit profits. Notably, a 30-day public comment period must be completed before the proposed rule becomes operative.Huione Group becomes a preferred marketplace for criminals to conduct money laundering operationsU.S. Treasury Secretary Scott Bessent said in a statement on May 1 that malicious cybercriminals such as Lazarus Group had stolen billions of dollars from regular Americans and that Huione Group has become their preferred marketplace.These remarks followed investigations that the Huione Group had established a network of companies, including the cryptocurrency exchange Huione Crypto, the payment service platform Huione Pay PLC, and the online marketplace Haowang Guarantee, which sold illegal goods and services.Moreover, FinCEN revealed that from August 2021 to January 2025, Huione Group allegedly laundered at least $4 billion in illicit proceeds, including over $36 million from cryptocurrency pig slaughtering schemes. According to the Treasury, at least $37 million worth of the cryptocurrency that was laundered was connected to North Korea’s “cyber heists.”One notable case involved the laundering of $35 million from the $305 million hack of Japan’s DMM Bitcoin exchange through Huione Guarantee, a subsidiary of Huione Group.Victims of these scams have suffered significant financial losses. Beth Hyland, one of the pig butchering victims, said she had been the victim of a Tinder scammer in 2024 who kept “manipulating and gaslighting” her until she sent over a significant amount through Bitcoin ATMs.“We started chatting and hit it off right away. We were going to meet. He said he was a freelance manager for a construction company,” Hyland recalled, explaining how the Nigeria-based con artist kept claiming he was locked out of his bank accounts and was hard up for funds to pay his workers.The Treasury said that Haowang Guarantee had turned Huione Group into a “one-stop shop” for criminals to launder cryptocurrency they had acquired through illegal means and then exchange it for fiat currency.Furthermore, Huione Pay, a company based in Phnom Penh, was reported to have received more than $150,000 in cryptocurrency last year from a wallet belonging to North Korea’s notorious Lazarus hacking group, which was suspected of stealing billions of dollars worth of cryptocurrency over the years, most likely to finance domestic projects.According to Bessent, today’s proposed action will sever Huione Group’s access to correspondent banking, degrading these groups’ ability to launder their ill-gotten gains. Treasury remains committed to disrupting malicious cyber actors’ attempts to secure revenue from or for their criminal schemes.The Huione Group gets into trouble for its cryptocurrency laundering activitiesThe conglomerate had also developed the U.S. Dollar Huione (USDH), a U.S. dollar-pegged stablecoin FinCEN claimed was unfrozen and aided in money laundering.Consequently, payment companies were prohibited from dealing with or trading digital assets in Cambodia, according to the National Bank of Cambodia, revoking the company’s local banking license in March.In addition, concerning the U.S. Treasury Department’s suggestion to cut off the Cambodia-based Huione Group from the U.S. financial system, the FinCEN attempted to use Section 311 of the USA PATRIOT Act, which gave it nuclear option power, to make this possible.In its rulemaking submission, the Treasury’s FinCEN pointed out that while the conglomerate did not have correspondent accounts with U.S. financial institutions, it did have accounts with foreign companies with U.S. correspondent accounts.The Treasury’s action against Huione is part of a broader effort to combat North Korea’s use of cybercrime and digital asset theft to fund its weapons programs. In December 2024, the U.S. sanctioned two Chinese nationals and a UAE-based company for facilitating money laundering operations that funneled illicit proceeds back to Pyongyang.Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your SpotSource link
You may also like

Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
Overview of Important Market Events on June 25

From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.

Why do cryptocurrency projects always like to change their names?
In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.

Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
The trusted AI prediction ecosystem Manadia, which has secured $7 million in funding from well-known institutions like OKX, will globally launch in June. The core token UMXM has already been listed on multiple mainstream platforms, inviting you to seize the new blue ocean of the trillion-level predi...

Who is footing the bill for the $64 billion accounting frenzy?
Affected by Bitcoin falling below $60,000, publicly listed companies heavily invested in this asset are facing huge paper losses and valuation discounts, and their debt structure and accounting standards may trigger structural liquidity risks in the future.

I never expected that the first application of AI x Crypto would be in security auditing
AI has accelerated attack efficiency and also promoted the upgrade of defense systems. The security audit sector is undergoing a transition from a dividend model to a competitive model.

What is your view on Binance's competitive advantages?
When the dividends of rule arbitrage gradually approach zero, can we produce product strength, governance capability, and trust that are commensurate with its scale?

ETH has entered a non-consensus phase, and the turning point is approaching!
This has nothing to do with the Ethereum Foundation or Ethlabs; Ethereum needs to win by solving real problems.

The shift in the cloud of the air: from despising stablecoins a year ago to the high-profile entry of capital today
It can continue to question the cost-effectiveness of stablecoins in the G10 currency corridor, but it cannot ignore the structural opportunities of stablecoins in emerging markets, corporate finance, and on-chain settlements.

The survival dilemma of small and medium exchanges behind the withdrawal anomalies exposed by AscendEX
The living space is constantly being compressed.

Why Is Bitcoin Falling Below $60K? 5 Key Market Drivers Explained
Bitcoin has dropped sharply amid ETF outflows, Strategy stock weakness, AI stock rallies, and changing Fed expectations. Explore the key forces driving BTC’s latest correction and what traders should watch next.

Bitcoin vs. Gold in 2026: Which Asset Performs Better in Different Markets?
Bitcoin vs. gold in 2026: Why are both assets falling, and what does their changing correlation mean? Discover what drives Bitcoin and gold prices and how traders can navigate different market conditions.

Morning News | The draft amendment to the People's Bank of China Law aims to clarify the legal status of digital renminbi; South Korea will transfer about 40 unregistered virtual asset service providers to law enforcement agencies
Overview of Important Market Events on June 24

The cryptocurrency industry has entered the "Show Me" era: merely relying on vision is no longer enough
The awareness level of the audience in the cryptocurrency industry—including media, institutions, and retail investors—is steadily increasing, and this trend has become a foregone conclusion.

Interpreting the Ethereum Foundation's new structure: Reaffirming self-sovereignty amid institutional trends
The Ethereum Foundation has announced a new five-layer working framework, clarifying the focus of future development and reaffirming its commitment to decentralized core values amidst the wave of institutionalization.

Former SpaceX engineer reconstructs the financial execution system using first principles
Plan Execution Lab completes angel round financing for Singapore family office, with a valuation of 50 million USD.

Standard Chartered Bank sings a 50x rhapsody again, aiming for AAVE to reach 3500 USD
The throne of DeFi lending still exists, but the foundation beneath the throne needs to undergo a reconstruction or reinforcement.

Tidal Investment: We still have a positive outlook on the AI industry chain, but the reasons have changed
The intense financing by tech giants has triggered a panic of "AI peak," but the soaring capital expenditures of the five major cloud vendors and the bottlenecks in physical infrastructure indicate that the AI investment cycle is far from over; the second half of this grand performance has just begu...
Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
Overview of Important Market Events on June 25
From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.
Why do cryptocurrency projects always like to change their names?
In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.
Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
The trusted AI prediction ecosystem Manadia, which has secured $7 million in funding from well-known institutions like OKX, will globally launch in June. The core token UMXM has already been listed on multiple mainstream platforms, inviting you to seize the new blue ocean of the trillion-level predi...
Who is footing the bill for the $64 billion accounting frenzy?
Affected by Bitcoin falling below $60,000, publicly listed companies heavily invested in this asset are facing huge paper losses and valuation discounts, and their debt structure and accounting standards may trigger structural liquidity risks in the future.
I never expected that the first application of AI x Crypto would be in security auditing
AI has accelerated attack efficiency and also promoted the upgrade of defense systems. The security audit sector is undergoing a transition from a dividend model to a competitive model.
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com




