Huione Pay Suspends Operations After Surge in Withdrawals Amid U.S. Sanctions

TLDR

• Huione Pay suspended operations due to increased withdrawal activity.
• U.S. sanctions target Huione for money laundering and crypto scams.
• The company has processed billions in illicit crypto transactions.
• Earlier, OKX froze accounts linked to Huione following U.S. regulatory actions.
• U.S. Treasury blocks Huione’s access to the U.S. financial system due to cybercrime connections.

Huione Pay, a Cambodian financial service platform, has suspended its operations after a surge in withdrawal requests. The freeze, announced Monday, caused panic among users who rushed to withdraw their funds. According to a report by a local media outlet, the company, already under U.S. sanctions, cited increased withdrawal activity as the reason for the temporary shutdown.

U.S. Sanctions Lead to Severe Operational Disruptions

Huione Pay has been targeted by the U.S. for its involvement in illicit financial activities, including money laundering and crypto scams. The Financial Crimes Enforcement Network (FinCEN) and the U.S. Treasury Department severed its connections to the U.S. financial system. Earlier this year, Cambodia’s central bank revoked Huione Pay’s license due to these allegations.

The company has processed billions of dollars in illicit cryptocurrency transactions, with many tracing back to criminal organizations and cybercrimes. Huione Pay, which also operates under the name H-Pay, has been rebranded amid these ongoing regulatory investigations. Local reports indicated that Huione Pay’s operations have been halted indefinitely, further escalating concerns over its future.

Previous Reports Highlight Huione’s Role in Money Laundering

In our previous report, Blockonomi outlined Huione Group’s involvement in laundering over $4 billion through cryptocurrency exchanges. The U.S. Treasury Department announced that Huione’s network had become a significant hub for illicit financial transactions. One of the major players in this network, Huione’s crypto exchange, had its transactions flagged by major platforms like OKX for compliance violations.

OKX had frozen accounts linked to Huione Group, adhering to strict anti-money laundering (AML) rules. The exchange clarified that it was thoroughly investigating suspicious transactions related to Huione, reinforcing its commitment to regulatory compliance. OKX’s actions were in response to U.S. sanctions on Huione, which had laundered billions through the crypto space.

U.S. Treasury Block on Huione Pay Activities

Another report from Blockonomi highlighted the U.S. Treasury’s move to block Huione Group from the U.S. financial system. According to the Treasury, Huione helped facilitate North Korean cybercrime operations, laundering millions of dollars in stolen cryptocurrency. The Treasury’s action aims to cut off Huione’s access to U.S. banking channels, which could disrupt the group’s operations further.

The Financial Crimes Enforcement Network (FinCEN) detailed how Huione facilitated multiple illicit activities, including fraud and narcotics trafficking. The U.S. has taken significant steps to curb the group’s financial influence, noting the use of a stablecoin pegged to the U.S. dollar to launder funds. Cambodian authorities have also taken action, with local regulations barring Huione Pay from engaging in digital asset transactions.

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