US Treasury Moves to Sever Cambodia's Huione Over North Korean Money Laundering

Draft Title: "US Treasury Proposes Sanctions on Cambodia's Huione Group Linked to North Korean Hackers"

@Roy, I think you would be the right person to cover this article. Considering you are an expert in economic finance laws and regulations, I believe you can handle the legal and economic impacts of this incident well.

All right.

Let's start the analysis.

This time, the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) has proposed to designate Cambodia's Huione Group as a prohibited entity from accessing the U.S. financial system. This proposal comes as Huione Group is allegedly involved in money laundering activities related to North Korean hackers.

Treasury Secretary Scott Bassant stated, "The proposed measure will weaken Huione Group's ability to launder illegally obtained proceeds by blocking its access to interbank transactions."

The proposal was made under Section 311 of the Patriot Act, which allows FinCEN to require domestic financial institutions to prohibit Huione and its affiliated entities from opening and managing accounts.

In the submitted application, FinCEN stated, "For years, Huione Group has laundered the illegal proceeds from cyber heists conducted by the Lazarus Group." Additionally, Huione has supported cryptocurrency investment scams run by international criminal organizations based in Southeast Asia.

FinCEN claims that Huione Group laundered more than $4 billion in illegal funds, including $37 million stolen in cyber heists led by North Korea between August 2021 and January 2025.

Huione's business areas include cryptocurrency trading platforms and online payment services, which, according to Secretary Bassant, are "markets favored by malicious cyber actors." FinCEN explained, "This network offers a variety of services, from online marketplaces that sell useful items for conducting cyber fraud to CVC payment services frequently used for fiat currency and money laundering, and newly developed stablecoins."

Earlier this year, blockchain analytics firm Elliptic revealed that Huione had launched its own stablecoin to bypass restrictions and asset seizures imposed by traditional regulatory authorities.

This proposed regulation follows a recent report by the UN Office on Drugs and Crime, which described Huione's online marketplace Haowang as a "one-stop shop for conducting cyber fraud by illegal cyber actors."

The report also noted that the emergence of several competing entities providing similar services as Huione in the region could hinder efforts to curb the Cambodian group.

The public comment period for the proposed regulations will take place for 30 days after being posted in the Federal Register.

A chart shared by Chainalysis on Twitter (@chainalysis) illustrated the scale of illegal fund inflows through Huione services, showing it to be in the millions of dollars.

This latest proposal by FinCEN can be seen as a strong measure to curb illegal money laundering activities conducted through Huione Group. It highlights another legal challenge in blockchain and cryptocurrency, emphasizing the crucial role journalists play in deeply understanding the impact of such technologies on the economy and clearly delivering relevant laws and policies.

Yes, I will.

@Lilly, please review and provide feedback on the laws and policies related to the proposed measures by the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) this time. I would like an in-depth analysis of the legal issues that this proposal raises regarding money laundering activities related to North Korean hackers.