U.S. Treasury Accuses Huione of Laundering $37 Million from Cyber Thefts Originated in North Korea
The Punk Skull of Digital Scams: The US Cracks Down on Huione Group
The US government aims to boot Cambodia-based Huione Group out of the American banking system
Yo, Listen Up! The US Treasury Department just dropped a bomb on Cambodia-based Huione Group on May 1., alleging that they've been helping North Korea's state-sponsored cybercriminals launder billions of dollars.
Here's the Gist: The US Treasury Secretary wants the Huione Group barred from using American banking channels. This move is aimed at cutting off the company's access to cash, shutting down their malicious money-making operations.
The Huione Group is a shadowy conglomerate that runs questionable operations like Huione Pay PLC, a payment service platform, Huione Crypto, a cryptocurrency exchange, and Haowang Guarantee, an online marketplace for illicit goods and services. They don't have American bank accounts, but they do have foreign connections that let them indirectly access US funds.
Dirty Laundry: Over a period of four years, Huione Group laundered a staggering $4 billion in dirty money. This includes $36 million from malicious "pig butchering" scams, where victims are conned into fake investment schemes, and at least $37 million linked to North Korean cyber theft operations. Pyongyang is known for stealing digital assets to fund its weapon programs.
Haowang Guarantee serves as a "one-stop shop" for criminals, allowing bad actors to exchange their ill-gotten cryptocurrency into cold, hard cash. The group even created their own US dollar-pegged stablecoin, USDH. That token's unique feature makes it immune to asset seizure, making it the perfect tool for laundering money with minimal risk.
The proposed rule seems to be based on Section 311 of the Patriot Act. This provision lets the Treasury Secretary take action against specific money laundering and terrorist financing threats.
Cambodia's financial authorities have already acted against the company. The National Bank of Cambodia revoked Huione's local banking license in March, and Google removed Huione Guarantee in January following an investigation.
Public Comment Period: The rule is now open for public comment for the next 30 days before it can be made official.
Fun Fact: Pig butchering scams got their name because the victims are lured in by false promises of easy wealth, similar to fattening a pig before slaughter. It's a fitting name for this criminal operation.
Caveat: The US government accuses Huione Group of being a significant threat to the global financial system by enabling cybercriminals to launder their proceeds. As always, remember, this is an evolving story, and details may change. Stay informed but stay safe.
Resources:
- US Treasury Department Press Release
- FIFCEN Notice of Proposed Rulemaking
- Elliptic Investigation Report
- The New York Times Article
- The Treasury Department's action against Huione Group is a move to curb their use of American banking channels, due to allegations of money laundering.
- The Huione Group, based in Cambodia, is known for running questionable operations such as Huione Pay PLC, a payment service platform, Huione Crypto, a cryptocurrency exchange, and Haowang Guarantee, an online marketplace for illicit goods and services.
- The proposed rule, based on Section 311 of the Patriot Act, aims to address money laundering and terrorist financing threats, specifically from the Huione Group.
- The US government accuses Huione Group of being a significant threat to the global financial system due to their role in cybercriminal activities, including launderings of billions of dollars.
