U.S. Cracks Down on Huione Group: Billions in Crypto Laundering Exposed

The U.S. just dropped a regulatory hammer—and Huione Group’s alleged crypto laundering empire is in the crosshairs. Billions flowed, regulators froze. Here’s how it unraveled.

The Dirty Pipeline

Forget shadowy offshore accounts. Huione’s operation allegedly turned crypto’s transparency into a weakness—exploiting decentralized networks to wash staggering sums. Chainalysis couldn’t ignore the red flags.

Regulators Strike Back

When Treasury’s FinCEN team traced the money trail, they didn’t just find loose ends. They uncovered a blueprint for modern financial crime—complete with shell companies and ‘privacy’ coins.

Crypto’s Reckoning?

This isn’t another ‘bad actor’ story. It’s a stress test for an industry that promised to clean up finance—while accidentally building better laundering tools. (Wall Street bankers are probably taking notes—and charging consulting fees.)

The takeaway? Crypto’s anti-establishment ethos just met its match: a U.S. government that actually understands blockchain.

Huione’s Network and Crypto Scam Operations

Huione’s platform became a hub for “pig butchering” scams, where fraudsters trick victims into fake crypto investments. The DPRK alone moved over $37 million through Huione, according to FinCEN. Moreover, another $336 million came from scams and darknet cybercrime.

While processing billions, Huione did not implement any AML and KYC policies. The company openly admitted having gaps in its vetting system. FinCEN also found the businesses under Huione had no published frameworks of compliance. Consequently, vandalization of funds took place through these gaps by cybercriminals for their perpetration and concealment.

Global Campaigns Against Crypto Scammers

According to the Turkish daily newspaper Daily Sabah, Turkish authorities seized the assets of crypto exchange ICRYPEX and its CEO, Gökalp Içer. Prosecutors claim ICRYPEX helped criminal groups convert illegal profits into crypto and reintroduce them into the financial system.

As crypto-related crime continues to grow, both U.S. and international regulators are stepping up their efforts to impose stricter controls. The recent actions against Huione and ICRYPEX highlight the increasing global pressure to combat money laundering schemes that are fueled by cryptocurrency.

Also Read: SEC Launches “Project Crypto” to Make USA the Crypto Capital