Core Insights - The Huione Group's banking services, Huione Pay, have ceased operations and cash withdrawals following sanctions from the U.S. and UK, aimed at disrupting Cambodia's $19 billion scam economy [1][2] - Huione has been identified as a critical infrastructure for money laundering and scam operations, with significant financial flows linked to illicit activities [3][4] Company Overview - Founded around 2014, Huione Group provides various financial services in Cambodia, primarily targeting Chinese-speaking users, including payments and financial transfers [5] - The company gained notoriety for its escrow service, Huione Guarantee, which facilitated connections for money laundering and scam-related activities [6] Industry Context - Cambodia has emerged as a center for large-scale online scamming, with over 100,000 individuals reportedly working in scam compounds, often under coercion [7] - The financial regulator in Cambodia revoked Huione Pay's banking license in March due to compliance violations, which Huione contested, claiming it no longer required a license [7] - The Financial Crimes Enforcement Network (FinCEN) designated Huione as a primary money laundering concern in May, highlighting its role in the country's scam economy, estimated to be 60% of the national GDP [8]

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]