FinCEN Proposes Ban on Huione Group for Crypto Scams, North Korea Links

• Huione Group laundered over $4B tied to crypto scams and North Korean cyber operations.
• FinCEN proposed banning Huione from U.S. banks under Section 311 of the Patriot Act.
• Huione launched a stablecoin to bypass enforcement and aid transnational laundering.

The United States Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed a rule that would bar the Cambodia-based Huione Group and its affiliates from accessing the U.S. financial system. The agency cited serious allegations of money laundering tied to cybercrime operations, including links to the North Korean hacker group Lazarus.

The Financial Crimes Enforcement Network identified Huione as responsible for laundering $4 billion between August 2021 and January 2025 through North Korean cyber thefts, amassing at least $37 million. According to Treasury Secretary Scott Bessent, the USA PATRIOT Act Section 311 proposed action seeks to interrupt Huione’s role as a financial channel benefiting illicit actors.

“This proposed action will sever Huione Group’s access to correspondent banking, degrading these groups’ ability to launder their ill-gotten gains,” Bessent said in a formal statement released Thursday.

Crypto Fraud, Stablecoins, and Illicit Online Services

FinCEN’s filing accused Huione of supporting a wide array of illegal activity, including transnational crypto scams and so-called “pig butchering” frauds. Using fake romance or investment schemes, these scams lure victims into fake romantic or investment schemes, extracting crypto assets from their victims.

According to blockchain analytics firm Elliptic, Huione offered personal data services, hosted payment platforms, and operated online marketplaces used by cybercriminals. Its infrastructure included Telegram-based chat groups to coordinate laundering operations and sell illicit tools. One platform, Haowang, was described in a UN report as a “one-stop shop” for cyber scam services.

Related: Gemini, Binance Breach Claims Surface: Is Your Crypto Account Data at Risk?

Earlier this year, Huione reportedly introduced a proprietary stablecoin, a digital asset intended to help bypass enforcement actions and seizure efforts by authorities. FinCEN noted that although Huione lacks direct relationships with U.S. banks, the new rule would proactively prevent American financial institutions from opening or managing any accounts tied to Huione entities. Also, banks would need enhanced scrutiny of transactions linked to the group.

U.S. Crackdown Signals Regulatory Pressure on Cybercrime Ecosystems

This proposal represents the most aggressive U.S. action yet against Huione Group. The New York Times previously reported Huione’s role as a central node in a global laundering network, facilitating billions in transactions that supported scams and state-linked cyberattacks.

The action also follows growing international concern over Southeast Asian laundering hubs. The United Nations Office on Drugs and Crime had recently warned that similar networks were multiplying in the region, potentially weakening enforcement impact.

Huione has yet to respond to the proposed rulemaking. FinCEN has opened a 30-day public comment period following the rule’s publication in the Federal Register. The decision would mark a significant step in U.S. efforts to disrupt financial infrastructure aiding state-backed cybercrime and crypto fraud if finalized.