The US Treasury Department plans to cut the Cambodia-based Huione Group off from the US banking system, citing its involvement in laundering cryptocurrency for North Korea's Lazarus Group. On May 1, the Financial Crimes Enforcement Network (FinCEN) proposed prohibiting US financial institutions from working with Huione, which has reportedly laundered at least $4 billion from illicit activities between August 2021 and January 2025. Huione’s operations include Huione Pay PLC, a payment service platform, and Huione Crypto, a cryptocurrency exchange. Despite lacking direct accounts with US banks, Huione maintains relationships with foreign firms that have US correspondent accounts. The Treasury Secretary stated the move aims to curtail the group's ability to facilitate money laundering. Additionally, Huione has produced a US dollar-pegged stablecoin, USDH, which has raised concerns due to its perceived role in financial crimes. FinCEN's proposed rule will enter a 30-day public comment period before enactment, amidst growing scrutiny of crypto-related illicit activities.

Source 🔗