Cambodia Dismantles $4 Billion Money-Laundering Network Used by Global Scammers
Cambodian authorities have revoked the license and liquidated the assets of Huione Group, a payment service provider accused of laundering more than $4 billion in illicit profits since 2021, according to the U.S. Treasury Department. The organization served as a financial hub for international criminal networks, including South Korean hackers and Southeast Asian fraudsters, helping them move proceeds from investment scams and other schemes across borders while evading detection.
Background and Context
Huione Group operated as an established financial institution in Cambodia and throughout Southeast Asia, presenting a legitimate business facade that masked its role as a sophisticated money-laundering operation. A New York Times investigation published in March revealed how the company's network of subsidiaries functioned as a one-stop shop for criminals seeking to clean illicit funds. The organization polished reputation in Cambodia's financial sector provided cover for what Treasury officials identified as a "major money-laundering front" facilitating global criminal enterprises.
Key Figures and Entities
Huione Group comprised several companies registered in Cambodia, operating under the umbrella of an established payment service provider. According to the U.S. Treasury Department's designation in November, the organization processed billions in transactions for scammers conducting fraudulent investment schemes, romance scams, and other online fraud. The National Bank of Cambodia announced the shutdown in a statement posted on LinkedIn, noting that no financial institutions in the country are authorized to conduct cryptocurrency transactions.
Legal and Financial Mechanisms
The laundering operation relied heavily on cryptocurrency platforms to obscure the origins of illicit funds. Analytics firm Elliptic identified one Huione marketplace linked to more than $26 billion in cryptocurrency transactions since 2021, describing it as potentially the world's largest illicit internet marketplace. The group allegedly structured transactions through multiple corporate entities and digital platforms to bypass banking anti-money laundering controls and law enforcement detection. This multi-layered approach allowed scammers to convert digital assets into traditional currency or move funds internationally while maintaining anonymity.
International Implications and Policy Response
The dismantling of Huione Group highlights ongoing challenges in regulating cryptocurrency-based financial services, particularly in jurisdictions with developing regulatory frameworks. The case demonstrates how sophisticated criminal networks exploit gaps between national regulatory systems to move illicit proceeds globally. In its statement, the National Bank of Cambodia warned the public and financial institutions to "exercise extreme caution when conducting transactions involving crypto assets." The Treasury Department's blacklisting of Huione and its subsidiaries forbids American financial institutions from dealing with the group, representing one component of international efforts to disrupt such laundering networks.
Sources
This report draws on U.S. Treasury Department designations, New York Times investigations, Elliptic analytics reports, and official statements from the National Bank of Cambodia.
