FinCEN has proposed disconnecting the Cambodia-based platform Huione Group from the American financial system. The regulator accused the company of laundering $4 billion, including funds linked to the North Korean hacker group Lazarus.
According to the statement, Huione Group and its subsidiaries will lose access to correspondent accounts in the US. This will hinder the movement of funds through banks, stated Treasury Secretary Scott Bessent.
FinCEN claims that from 2021 to 2025, Huione processed $37 million stolen in cyberattacks organized by North Korea. The company operates crypto exchanges, payment services, and its own stablecoin, which, according to Elliptic, was created to circumvent sanctions.
In FinCEN documents, Huione’s Haowang marketplace is described as a “one-stop shop” for cybercriminals: it sells fraud tools and offers fiat and crypto payments.
The initiative will be published in the Federal Register, followed by a 30-day public comment period. The proposed restriction is developed in accordance with Section 311 of the USA PATRIOT Act.
In April, the UN expressed concern about money laundering through mining. According to the UNODC, Haowang is one of the central nodes of the described underground economy.