US Treasury Targets Huione Group for Crypto Laundering and North Korean Hacker Ties

The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has proposed a significant crackdown on Cambodia based Huione Group, accusing the conglomerate of laundering over $4 billion in illicit funds, including assets tied to North Korean hackers. The proposed rule, submitted under Section 311 of the Patriot Act, aims to sever Huione’s access to the U.S. financial system, marking a bold step to curb global cybercrime. Announced on May 2, 2025, the measure targets Huione’s sprawling operations, which include cryptocurrency trading platforms and online payment services allegedly used to facilitate illegal activities.

FinCEN’s filing alleges that Huione has become a hub for cybercriminals, particularly the notorious Lazarus Group, a North Korea linked hacking collective known for high-profile cyber heists. Treasury Secretary Scott Bessent emphasized the rule’s intent to disrupt Huione’s ability to process illicit proceeds through correspondent banking channels. The proposed restrictions would require U.S. financial institutions to prohibit Huione and its affiliates from opening or managing accounts, effectively isolating the group from the American financial market.

Huione’s Role in Global Cybercrime

Between August 2021 and January 2025, Huione allegedly laundered $4 billion in illegal funds, including $37 million directly linked to North Korean cyber thefts. The group’s ecosystem, which includes crypto exchanges and a recently launched stablecoin, has been described as a “marketplace of choice” for malicious actors. According to FinCEN, Huione’s services cater to a range of illicit activities, from crypto investment scams orchestrated by Southeast Asian crime syndicates to the sale of tools for executing cyber fraud.

A recent United Nations Office on Drugs and Crime report highlighted Huione’s online marketplace as a critical infrastructure for cybercriminals seeking to perpetrate fraud. The report underscored the platform’s role as a “one-stop-shop” for illicit actors, offering everything from payment processing to scam-enabling tools. However, the emergence of competing entities in the region offering similar services poses a challenge to fully dismantling Huione’s influence, raising concerns about the broader ecosystem of cybercrime in Southeast Asia.

The proposed rulemaking signals a broader U.S. effort to combat the intersection of cryptocurrency and cybercrime, particularly as North Korean hackers increasingly exploit digital assets to fund state-sponsored activities. By targeting Huione, FinCEN aims to disrupt a key node in the global money laundering network, though the rise of alternative platforms may require sustained international cooperation.