Overview of Huione Group's Operations - Huione Group is identified as a key gateway to global crime, facilitating scam compounds where trafficked people are forced to scam others [1][2] - The US Treasury Department classifies Huione as engaged in money laundering, describing it as the "Amazon for criminals" [3] - Huione operates through various arms, including Huione Pay (payment services) and Huione Guarantee (online marketplace for illicit items) [5][9] Illicit Activities and Modus Operandi - Huione Pay is alleged to be involved in money laundering through a cell called Huione International Pay, facilitating scams like fake romance schemes [7][8] - Huione Guarantee hosts an online marketplace on Telegram where buyers and sellers can purchase illegal items needed for online scams, including stolen data and money laundering services [9] - The platform facilitates efficient scam operations, offering everything needed to target and extract money from victims worldwide [10] Scale and Impact - Huione Guarantee's transaction volume ($28 billion) dwarfs that of previous darknet markets like Silk Road and AlphaBay (totaling $11 billion) [11] - Elliptic's research indicates that Huione Group entities received over $91 billion in crypto assets in the last five years [28] - The cybercrime industry in Southeast Asia, often underwritten by Chinese mafia members, is a multibillion-dollar industry, with Cambodia being a major driver [21] Regulatory and Investigative Actions - The US Treasury Department has blacklisted Huione from US markets for engaging in money laundering [30] - Telegram has taken action to shut down most of the channels used by Huione Guarantee [29] - Huione Crypto appears to have rebranded itself as Kex, but transaction volumes remain high [32] Connections and Complications - Huione has directors who also work for other powerful conglomerates and banks in Cambodia, including Hun To, a cousin of Cambodia's Prime Minister [27] - Huione has developed its own stablecoin (USDH) to evade attempts to freeze wallets [31] - Proving Huione facilitates illegal activity is challenging due to its lack of transparency and complex financial structure [12][13]

Regulatory Landscape - Hong Kong is preparing to integrate stablecoins into its financial system with new regulations [1] - Licensed issuers must conduct full KYC (Know Your Customer) on holders to combat money laundering, starting August 1 [1] Market Concerns - HKMA (Hong Kong Monetary Authority) chief Eddie Yue cautioned about market bubbles driven by hype [1] Industry Focus - The report raises the question of whether this is the future of compliant stablecoins [1]

The founders of a cryptocurrency mixing service admitted helping launder more than $100 million in proceeds from illegal darkweb marketplaces and fraud schemes, as the developer of a similar platform awaits a jury verdict in the same court. https://t.co/HGOmOZA48N ...

HSBC’s Swiss private bank is being investigated by local and French law enforcement agencies over its involvement in alleged money laundering, the bank said in a statement https://t.co/8cBn5hGLFR ...

Regulatory & Legal Landscape - US Treasury sanctioned Tornado Cash for allegedly facilitating over $1 billion in illicit funds laundering [1] - Roman Storm, a co-developer, was arrested and faces potential decades-long sentence for conspiracy to commit money laundering, sanctions violations, and operating an unlicensed money transmitter [1] - The core legal question is whether publishing privacy-preserving smart contracts constitutes a crime if illicit actors utilize them [1] - The case has significant implications for open-source developers globally, privacy rights, AML enforcement, and future mixer development [1] Technical & Investigative Aspects - Government's opening witness tied her scam losses to Tornado Cash using tracing via "Payback" [1] - IRS Special Agent Stephan George testified, tasked with tracing funds to Tornado Cash, but lacked knowledge of crypto[.]com and the difference between ERC-20 and ETH [1] Defense Arguments - Defense argues Tornado Cash is autonomous software, not a service controlled by Storm, with no direct customer service or control post-deployment [1] - Prosecution of developers for open-source code threatens fundamental principles [1]

Mexico’s Banorte is beefing up technology and compliance and reviewing its customer activity after the US accused three of the country’s smaller financial firms of facilitating money laundering, Chief Executive Officer Marcos Ramirez said https://t.co/CXr3TYqXYB ...

A hedge fund's alpha capture system attracted a brother-sister duo with side hustles in insider trading and money laundering https://t.co/9AvzdQoJ3e ...

Morgan Stanley is reportedly being probed by the Financial Industry Regulatory Authority over its vetting of clients for risk of money laundering https://t.co/bTOXh6Izmn ...

Exclusive: Morgan Stanley is being probed by the Financial Industry Regulatory Authority over whether the Wall Street giant properly vetted its wealth-management clients for money laundering risks https://t.co/MvgegPDTSe ...

The US Treasury is granting a temporary reprieve to three Mexican financial firms it moved to cut off from the US financial system, citing the country’s progress in addressing money laundering by drug trafficking cartels https://t.co/p02UyBIV8l ...