The US recently sanctioned Cambodia-based Huione Group, calling it a transnational crime organization. Authorities have now confirmed that the group laundered criminal funds through South Korean cryptocurrency exchanges.
Data from South Korea’s Financial Supervisory Service (FSS) shows significant capital movements.
Bithumb Processed Most of the Suspicious Transactions
Huione’s subsidiary, Huione Guarantee, conducted extensive transactions with Korean won-market exchanges over the past three years. In total, deposits and withdrawals in Tether (USDT) reached about 15.9 billion KRW ($12 million).
The office of ruling People Power Party lawmaker Lee Yang-soo disclosed the FSS data on Monday. The records reveal that Huione Guarantee was deeply involved in financial activity with Korean exchanges.
Further, officials suspect the funds are linked to kidnapping, human trafficking, and voice phishing operations currently under investigation in Cambodia.
Bithumb processed the majority of transactions, handling about 14.6 billion KRW, while Upbit and Korbit accounted for 889 million KRW and 454 million KRW, respectively.
Meanwhile, the timing of these transfers has raised an alarm. They coincide with a spike in fraud, kidnapping, and human trafficking cases in Cambodia.
On October 18, the South Korean government repatriated 64 Korean nationals arrested in Cambodia for participating in online fraud schemes. Many were reportedly held captive by Chinese crime syndicates.
Possible Links to Kidnapping and Sanctions
Recent high-profile cases involving Korean victims of kidnapping, confinement, and murder have prompted a broader probe. South Korean authorities are investigating whether these incidents are tied to Huione Group’s operations.
Investigators noted that transactions between Bithumb and Huione surged in 2024, around the same time reports increased of Koreans being lured to Cambodia under false job offers and then detained.
Who Is the Huione Group?
Huione Group presents itself as a legitimate Cambodian conglomerate. Yet, its subsidiary Huione Guarantee has been accused of facilitating online fraud and money laundering under the guise of offering payment and surety services.
The group first drew international attention in July 2024, when blockchain analytics firm Elliptic reported that Huione Guarantee was a key platform for cryptocurrency laundering.
Initially launched in 2021 as a peer-to-peer marketplace for cars and real estate, the platform evolved into a major exchange hub for Chinese yuan and USDT among criminal networks across Southeast Asia. Elliptic estimated that it processed about $11 billion in illicit funds.
Crackdown and US Sanctions
On October 14, 2025, the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) imposed sanctions on Huione Group. The action effectively cut the conglomerate off from the US financial system.
The Treasury cited confirmed links between Huione Group and North Korean cybercrime operations as well as large-scale virtual asset scams across Southeast Asia.
Authorities continue to trace the network’s financial ties as investigations expand across multiple jurisdictions.
