US Targets Cambodia’s Huione Over Alleged $4 Billion Laundering Scandal

[geovalin]

 

In a major blow to Cambodia’s financial reputation, the United States has moved to blacklist Phnom Penh-based Huione Group, accusing it of laundering billions in illicit funds tied to cybercrime, crypto scams, and even North Korean hackers.

 

The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) on Thursday proposed banning Huione from the American financial system, labelling it “a primary money laundering concern.” If finalised, the move would prohibit American firms from doing business with Huione, effectively cutting off its access to global banking networks.

 

Huione, which operates widely in Southeast Asia, is accused of facilitating more than $4 billion in dirty money transfers between August 2021 and January 2025. This includes at least $37 million in cryptocurrency linked to cyber heists by North Korea’s notorious Lazarus Group, and another $36 million from so-called “pig butchering” scams — elaborate fraud schemes that prey on online victims through fake relationships.

 

“Huione has become the marketplace of choice for cybercriminals,” said FinCEN Director Scott Bessent, pointing to its alleged role in enabling large-scale financial crime, particularly against American citizens.

 

The proposed sanctions enter a 30-day consultation period, during which U.S. authorities may receive further information before making the ban official. Huione Group has not yet responded publicly to the allegations.

 

A Reuters investigation last year reported that Huione Pay — one of Huione’s units — had received cryptocurrency from a wallet linked to the Lazarus Group. The company denied direct knowledge of the transaction, saying the wallet involved was not under its control.

 

The Treasury’s actions highlight growing international concern about Cambodia’s rising role in transnational crime networks, especially through unregulated digital payment platforms. The U.N. has previously warned that crypto transactions help North Korea evade sanctions and finance illicit activities.

 

While Cambodian authorities have yet to comment, the development is likely to draw attention at the highest levels, given the reputational damage and potential pressure on the country’s banking sector.

 

As scrutiny of Southeast Asia’s digital finance networks intensifies, the Huione case may mark a turning point in how global regulators respond to the region’s entanglement with cybercrime and underground economies.

 

-2025-05-05