The North Korea-linked Huione Group is suspected of laundering 11.8 million dollars through the three major CEXs in South Korea, possibly involving human trafficking and fraud cases in Cambodia.

The transnational crime organization Huione Group, suspected of being linked to North Korean cybercrime, has been confirmed to have laundered 11.8 million USD in criminal funds through domestic cryptocurrency exchanges in South Korea. Data from the Financial Supervisory Service (FSS) indicates that Huione's subsidiary Huione Guarantee has conducted a significant volume of transactions using Tether (USDT) over the past three years. One domestic CEX processed approximately 14.6 billion KRW (accounting for the majority), while two other CEXs were also involved. The timing of these suspicious fund flows coincides with a recent surge in scams, kidnappings, and human trafficking cases in Cambodia, raising serious concerns for South Korean authorities regarding the anti-money laundering (AML) processes of these cryptocurrency exchanges.

The transnational crime organization Huione Group infiltrates the South Korean crypto market

Recently, the United States sanctioned the Huione Group, headquartered in Cambodia, labeling it as a transnational criminal organization. South Korean authorities have now confirmed that the group laundered criminal funds through South Korea's major crypto assets exchange.

According to data released by the Financial Supervisory Service of Korea (FSS), Huione's subsidiary Huione Guarantee has conducted extensive transactions with the Korean won market exchange over the past three years. The total amount deposited and withdrawn in the form of Tether (USDT) has reached approximately 15.9 billion Korean won (about $1200 million USD). The office of ruling party People Power Party member Lee Yang-soo disclosed this FSS data on Monday.

Major exchanges carry the majority of suspicious transactions

Data shows that three major exchanges are involved in suspicious transactions, with one exchange accounting for the vast majority of the trading volume:

• CEX starting with B: Processed approximately 14.6 billion KRW ( equivalent to 11 million USD ), accounting for the vast majority of the total trading volume.
• U starting CEX: Involved 889 million KRW.
• CEX starting with K: Involved 454 million KRW.

Particularly concerning is that investigators pointed out that the trading volume of Exchange B with Huione surged in 2024, coinciding with an increase in reports of South Korean citizens being lured to Cambodia by false job opportunities and being detained.

Investigation of the Connection Between Capital Flow and Crime in Cambodia

Authorities suspect that the laundered funds are related to criminal activities currently being investigated in Cambodia, such as kidnapping, human trafficking, and voice scams. The timing of these fund transfers coincides with a surge in fraud, kidnapping, and human trafficking cases in Cambodia, raising alarms.

On October 18, 2025, the South Korean government repatriated 64 South Korean citizens who were arrested in Cambodia for participating in online fraud. It is reported that many of them were imprisoned by Chinese criminal groups. South Korean authorities are conducting a thorough investigation to determine whether these incidents have a direct connection to the operations of Huione Group.

The Background of the Huione Group Case

Huione Group appears to be a legitimate business group in Cambodia, but its subsidiary Huione Guarantee has been accused of facilitating internet fraud and Money Laundering under the guise of providing payment and guarantee services.

The group first attracted international attention in July 2024, when blockchain analytics firm Elliptic reported that Huione Guarantee was a key platform for Money Laundering in Crypto Assets. Initially, the platform was a peer-to-peer marketplace for cars and real estate, but it later evolved into a major hub for the exchange of RMB and USDT within Southeast Asian crime networks, with Elliptic estimating the total amount of illegal funds processed to be as high as $11 billion.

In light of this, the Financial Crimes Enforcement Network of the U.S. Department of the Treasury ( FinCEN ) has imposed sanctions on Huione Group on October 14, 2025, due to its confirmed links to North Korean cybercrime and large-scale virtual asset scams in Southeast Asia, severing the group's connections to the U.S. financial system.

Conclusion

The Huione Group money laundering case and its infiltration into South Korean crypto exchanges has once again sounded the alarm for AML regulation in crypto assets (AML). Although South Korea's three major local CEX exchanges may claim to have strict KYC/AML processes, the circulation of $11.8 million in suspicious funds—particularly those tied to serious transnational crimes such as North Korean cybercrime and Cambodian human trafficking—indicates regulatory loopholes or poor enforcement. With the U.S. Treasury's FinCEN imposing sanctions on the Huione Group and cutting its ties to the U.S. financial system, global regulators need to take stronger collaborative action to prevent crypto platforms from being used as tools for money laundering and supporting global criminal activities. The ongoing investigation into this case will be a critical test for assessing the regulatory maturity of the South Korean crypto market.