South Korean Crypto Exchanges See 1,400x Jump in Flows Linked to Sanctioned Cambodian Entities

Stablecoin flows between South Korea’s major crypto exchanges and Cambodian platforms surged nearly 1,400-fold last year, raising red flags about potential money laundering.

Figures from South Korea’s Financial Supervisory Service, disclosed by opposition lawmaker Lee Yang-soo, show crypto transactions between five local exchanges and Cambodia’s Huione Guarantee ballooned from 9.22 million (around $6,400) won in 2023 to 12.8 billion ($8.93 million) won last year.

Bithumb, Yonhap reports, alone accounted for 12.4 billion won of those flows. Upbit recorded 366 million won, while smaller sums moved through Coinone and Korbit. Gopax reported no activity.

Nearly all of these transfers, 99.9%, were in Tether’s USDT stablecoin, the report adds.

Huione Guarantee is affiliated with Huione Group, which has been sanctioned by the U.S. and U.K. for its alleged role in laundering crypto tied to scams and cybercrime. The group received over $94 billion in crypto before the crackdown started.

The company, which has links to the Asian country's ruling Hun family, runs a Telegram-based marketplace where users can purchase personal data, money laundering services and even electric shackles intended for use on human beings.

A similar entity, BYEX, linked to Cambodia’s Prince Group, also surfaced in a 680,000 won deposit to Bithumb earlier this year, Yonhap reports.

Though most Korean exchanges blocked transactions with Huione Guarantee by May 2025, the flows have continued into this year.

Authorities are now reviewing financial sanctions and transaction restrictions tied to criminal activity in Cambodia. Rep. Lee has urged regulators to investigate the role of domestic exchanges in facilitating illicit remittances and to develop safeguards against abuse.