tl;dr
The US sanctions Cambodia-based Huione Group over alleged crypto money laundering tied to South Korean exchanges, linking the organization to kidnapping, human trafficking, and fraud. Investigations reveal massive transactions via Bithumb and other platforms, coinciding with spikes in crimes in Camb...
**US Sanctions Cambodia-Based Huione Group Over Alleged Crypto Money Laundering Network**
The United States has imposed sanctions on the Cambodia-based Huione Group, labeling it a transnational crime organization linked to extensive money laundering through South Korean cryptocurrency exchanges. The move comes as authorities in both Cambodia and South Korea investigate the group’s alleged ties to crimes including kidnapping, human trafficking, and online fraud.
**South Korea’s Role in Financial Crime**
Data from South Korea’s Financial Supervisory Service (FSS) reveals that Huione’s subsidiary, Huione Guarantee, conducted massive transactions with local cryptocurrency exchanges over the past three years. According to the FSS, deposits and withdrawals of Tether (USDT) totaled approximately 15.9 billion KRW ($12 million). Notably, Bithumb, one of South Korea’s largest crypto exchanges, processed the majority of these suspicious transactions, handling around 14.6 billion KRW. Upbit and Korbit accounted for 889 million KRW and 454 million KRW, respectively.
The office of People Power Party lawmaker Lee Yang-soo disclosed the FSS data, highlighting Huione Guarantee’s deep involvement in financial activities with Korean exchanges. Officials suspect the funds are connected to criminal operations under investigation in Cambodia, including kidnapping, human trafficking, and voice phishing schemes.
**Timing and Crime Spikes**
The timing of these transactions has raised alarms. They coincide with a surge in fraud, kidnapping, and human trafficking cases in Cambodia. On October 18, South Korea repatriated 64 citizens arrested in Cambodia for involvement in online fraud, many of whom were reportedly held captive by Chinese crime syndicates.
Recent high-profile cases of Korean victims being kidnapped, confined, and even murdered have intensified scrutiny of the Huione Group. Investigators noted a sharp rise in transactions between Bithumb and Huione in 2024, aligning with reports of Koreans lured to Cambodia under false job offers and subsequently detained.
**The Huione Group’s Shadowy Evolution**
Despite presenting itself as a legitimate Cambodian conglomerate, Huione Group’s subsidiary, Huione Guarantee, has been accused of facilitating online fraud and money laundering. Initially launched in 2021 as a peer-to-peer marketplace for cars and real estate, the platform evolved into a key hub for cryptocurrency transactions, particularly for Chinese yuan and USDT, among criminal networks in Southeast Asia.
Blockchain analytics firm Elliptic flagged Huione Guarantee in July 2024 as a major node for cryptocurrency laundering, estimating it processed about $11 billion in illicit funds. The group’s operations have drawn international condemnation, with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) imposing sanctions on October 14, 2025.
**U.S. Sanctions and Global Investigations**
The U.S. sanctions cited confirmed links between Huione Group and North Korean cybercrime operations, as well as large-scale virtual asset scams across Southeast Asia. The move effectively cuts the conglomerate off from the U.S. financial system.
Authorities continue to trace the group’s financial ties, with investigations expanding across multiple jurisdictions. The case underscores the growing threat of cryptocurrency-facilitated crime and the challenges of combating transnational organized networks.
As South Korea and Cambodia intensify their efforts to dismantle Huione’s operations, the case serves as a stark reminder of the intersection between digital finance and organized crime. With global regulators tightening oversight, the pressure on crypto exchanges to detect and report suspicious activities is mounting, signaling a broader push to root out illicit financial systems.