Huione Pay Implodes: A Crypto Money Laundering Empire Crumbles

The crypto world is reeling from the temporary shutdown of Huione Pay, a financial services conglomerate based in Cambodia, after a major bank run and facing mounting regulatory pressure. Once lauded for its expansive reach across Southeast Asia, particularly among Chinese-speaking users, Huione has been exposed as a central hub for illicit financial activities, including money laundering for North Korean crypto heists and cybercrime proceeds.

Key Takeaways:

• Massive Scale: Huione-linked infrastructure processed over $96 billion in cryptocurrency since 2021, according to TRM Labs.
• Regulatory Action: FinCEN (U.S.) and other international agencies had been tightening the noose, with sanctions ultimately leading to the company's downfall.
• Escrow Abuse: Huione Guarantee, the platform's escrow service, became a favorite tool for money launderers operating on Telegram.

The Downfall

Huione's troubles began earlier this year when Cambodian regulators revoked its license due to compliance violations. The U.S. Financial Crimes Enforcement Network (FinCEN) subsequently identified Huione Group as a "primary money laundering concern," effectively cutting off its access to the U.S. financial system.

This culminated in October with joint sanctions from FinCEN, OFAC (U.S.), and FCDO (UK), targeting the Huione Group for allegedly laundering funds from crypto scams and heists.

Bank Run and Shutdown

On December 1st, Huione Pay announced a temporary shutdown until January 5, 2026, freezing withdrawals and triggering a bank run. Images circulating on social media depict long queues of customers outside the company's closed branches in Phnom Penh.

Chainalysis estimates that over $2.17 billion in crypto assets were stolen in the first half of 2025 alone. The report also projects that stolen funds from services could eclipse $4 billion by year’s end.