The U.S. Treasury’s Financial Crimes Enforcement Network unveiled a proposal under Section 311 of the Patriot Act to cut Cambodia’s Huione Group off from the U.S. financial system.
The move targets alleged links between Huione and North Korean cybercriminals, aiming to curb large‑scale money laundering of illicit proceeds.
Plan to Sever Banking Ties
FinCEN would require U.S. banks and other financial firms to bar Huione and its affiliates from opening or managing accounts. Treasury Secretary Scott Bessent said the action will cripple the company’s ability to hide and move funds earned through cyber heists and scams.
By denying Huione access to correspondent banking, authorities hope to block the flow of hundreds of millions of dollars in stolen assets.
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Allegations of Massive Laundering
In its filing, FinCEN claims Huione has handled more than $4 billion in illicit funds since August 2021. That sum includes $37 million in assets stolen during cyber attacks led by North Korea’s Lazarus Group.
U.S. officials say Huione’s crypto trading services and online payment platforms have become the marketplace of choice for cyber thieves, enabling operations across borders with little oversight.
North Korean Hackers and Crypto Crime
North Korean cyber operators have built a reputation for targeting digital currency platforms. A recent report from the Google Threat Intelligence Group revealed that hackers based in Pyongyang expanded their efforts to breach blockchain projects in the United Kingdom.
This activity follows an announcement by U.S. and Japanese authorities blaming North Korean criminals for a $308 million heist on Japanese cryptocurrency exchanges.
In that case, attackers used a complex social engineering campaign to break into servers and siphon off virtual assets early this year.
Global Impact and Response
The proposed rule reflects growing concern over the role of sanctioned entities in global money laundering. By naming Huione, U.S. regulators aim to send a clear signal that anyone aiding cybercrime networks may lose access to the dollar‑based banking system.
If finalised, the rule would also require other nations to consider similar measures, further isolating the company from legitimate financial channels.
FinCEN’s action marks a significant step in the fight against cross‑border cybercrime. Cutting off Huione Group could slow down North Korea‑linked operations and raise the cost of laundering stolen funds.
As agencies around the world weigh comparable measures, the case will test the reach of U.S. financial sanctions and their power to disrupt illicit networks. If successful, this plan may become a model for targeting other firms that enable large‑scale financial crime.
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