US Moves to Sever Cambodia-Based Huione Group’s Access to Banks for Supporting North Korea’s Lazarus Scams

U.S. Treasury Moves to Block Cambodia's Huione Group Over Money Laundering Ties with North Korea

The U.S. Treasury Department has taken a bold step in the fight against international money laundering, targeting Cambodia's Huione Group for its alleged role in laundering proceeds from cybercrimes.

This move, led by the Financial Crimes Enforcement Network (FinCEN), specifically addresses Huione's involvement with the notorious North Korean Lazarus Group.

Huione Group's Involvement in Cyber Heists and Fraudulent Activities

FinCEN's announcement reveals that Huione Group has been a key player in laundering illicit funds derived from cyber heists.

These heists, attributed to North Korea's Lazarus Group, are said to have resulted in billions of dollars worth of stolen assets.

Huione Group has been accused of being the "critical node" for these activities, facilitating the laundering of proceeds since August 2021.

FinCEN stated in its filing,

“Given the money laundering risk posed by Huione Group, we are proposing to prohibit U.S. financial institutions from opening or maintaining correspondent or payable-through accounts for or on behalf of the Group.”

This proposal aims to severely restrict Huione’s access to the U.S. financial system.

What Is at Stake for the U.S. Financial System?

The potential move to sever Huione Group’s connection to U.S. financial institutions is part of an ongoing effort to disrupt global cybercriminal networks.

The Treasury's proposal, made under Section 311 of the USA PATRIOT Act, would prevent Huione from accessing services like correspondent banking, making it significantly harder for the group to launder funds via the U.S. system.

The action follows growing concerns about the increasing use of Huione's marketplace by cybercriminals.

According to Scott Bessent, Secretary of the Treasury,

"Today's proposed action will sever Huione Group's access to correspondent banking, degrading these groups' ability to launder their ill-gotten gains."

Over $4 Billion Laundered, With Strong Ties to North Korean Heists

The financial activity linked to Huione Group is staggering.

Between August 2021 and January 2025, it is alleged that the group facilitated the laundering of over $4 billion.

Of this, at least $37 million was tied to assets stolen by the Lazarus Group in cyber heists.

Furthermore, $36 million was connected to fraudulent crypto investment schemes, while $300 million stemmed from various other cyber scams.

Elliptic, a blockchain analytics firm, revealed that Huione's platform had already processed over $11 billion worth of illicit transactions linked to online scams, especially in Southeast Asia.

This includes funds moved through crypto assets and fiat currencies, with a growing focus on stablecoins to evade detection.

The Role of Huione's Marketplace in Fraudulent Investments

Huione Group has long been linked to "pig butchering" scams, a term for fraudulent investment schemes that target unsuspecting victims through social media and online platforms.

The group provided crucial infrastructure for these scams, including a marketplace where illicit actors could exchange stolen funds for crypto and fiat currencies.

Bessent said,

"Huione has become a marketplace of choice for malicious cyber actors."

The group's role in running various cyber fraud schemes includes helping run investment scams and even launching a stablecoin to bypass financial regulations.

International Concerns and Rising Competition

This proposal follows a report by the United Nations Office on Drugs and Crime, which labelled Huione's Haowang marketplace as a "one-stop-shop" for cyber fraud.

The report also noted that competition in the region is intensifying, with other entities offering similar services, which could complicate efforts to take down Huione Group.

Despite these challenges, the proposed rule could set a precedent for taking action against global cybercriminal networks that exploit financial systems for illicit gain.

The public will have 30 days to comment on the proposed rule once it appears in the Federal Register, marking an important period for financial institutions and those monitoring the global fight against cybercrime.