In a rule proposal released on May 1, the Treasury’s Financial Crimes Enforcement Network (FinCEN) urged US banks to terminate correspondent and payable-through account services for Huione.

Deputy Treasury Secretary Scott Bessent described Huione as the “marketplace of choice for malicious cyber actors,” accusing it of aiding the theft of billions from ordinary Americans.

$4B Laundered, USDH Highlighted

According to FinCEN, Huione laundered over $4 billion in illicit funds between August 2021 and January 2025, including at least $36 million from crypto “pig butchering scams” and $37 million directly linked to North Korean cyberattacks.

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Its online service Haowang Guarantee has turned Huione into a one-stop crypto laundering hub, offering illegal goods and converting crypto to fiat currency.

FinCEN also flagged Huione’s stablecoin, the USDH (US dollar Huione), for its unfreezeable nature, which allegedly supports laundering operations.

Indirect US Bank Access and Regulatory Action

While Huione doesn’t hold direct accounts with US banks, FinCEN revealed it maintains accounts with foreign intermediaries that do, giving it indirect access to the US financial system.

The National Bank of Cambodia revoked Huione’s local banking license in March 2025, citing digital asset violations.

The proposed rule will undergo a 30-day public comment period before potentially being finalized.

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The post US Treasury Moves to Cut Off Huione Group Over Crypto Crime Ties appeared first on Coin Engineer.

Laundering Techniques and Connections

Elliptic reported that from many illegal operations, including hacks and frauds, Huione Guarantee has transacted around $11 billion worth of cryptocurrency. ZachXBT speculates that comparable laundering methods and off-chain signs may point to the infamous Lazarus Group, a North Korean cybercrime group, perhaps responsible for the DMM Bitcoin attack.

The hackers have been laundering the pilfers of Bitcoin into privacy mixers, then withdrawing and bridging the money to Ethereum or Avalanche via THORChain. Before being sent to Huione, the converted money is once again transferred into USDT and linked to Tron.

Tether’s Intervention

Tether intervened on July 12 by blacklisting a Tron wallet address, “TNVaK…s4Ug8,” therefore stopping $28.2 million from being sent to Huizen. ZachXBT claims that this wallet had already taken over $14 million from the DMM Bitcoin heist over three days.

ZachXBT also provided 538 wallet addresses connected to the Lazarus Group, Huione, and others tied to the breach.

influence on DMM Bitcoin

After a crucial flaw was discovered on May 30, enabling hackers to access the exchange’s systems and syphon off money, Japan-based DMM Bitcoin lost a staggering $305 million in Bitcoin. DMM Bitcoin then raised $320 million a week later to pay impacted consumers.

Blockchain security company Cyvers reports that as of yet in 2024, over $1.4 billion worth of cryptocurrencies had been stolen. With losses rising by 900% over the previous 12 months, centralized exchanges have become a main focus for hackers.

Cyvers saw a notable change in attack routes; centralized exchanges handle most of the key events while decentralized finance (DeFi) systems have showed better resistance.

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