The regulatory non-clarity and an ever-evolving landscape have made crypto a den of thieves. The landscape is riddled with criminal elements who can go to any lengths to conduct illicit business. One such name is the Huione Group, a known conglomerate that has been in cohorts with crypto criminals.
On May 1st, the US Treasury announced that the state will cut ties with Huione, a Cambodian Conglomerate. The firm is found to be related to one of the largest illicit online marketplaces in the US. As a result, it is a weeding-out effort taken by the Treasury’s Financial Crimes Enforcement Network or FinCEN.
FinCEN Bans Huione
FinCEN’s proposed rule clearly prohibits U.S. financial institutions from maintaining or opening accounts on the Huione Group server. This could end the Huione group’s presence in the US economic landscape.
Treasury Secretary Scott Bessent released a statement claiming, “Today’s proposed action will sever Huione Group’s access to correspondent banking, degrading these groups’ ability to launder their ill-gotten gains.”
Authorities also believe that the Huione group is not just a front for an illicit marketplace but also a money laundering service to support cybercriminals like the Lazarus Group of North Korea. Therefore, severing ties with the Huione group clearly states that the US will not tolerate cybercriminals operating under any guise.
