The United States Treasuryโs Financial Crimes Enforcement Network plans to restrict Cambodia-based Huione Group from accessing U.S. banking due to ties with international crypto crimes.
The move is significant as it targets a major node in crypto-fueled money laundering and cybercrime, potentially disrupting illicit crypto activities globally.
U.S. Treasury Targets Huioneโs Crypto Crime Links
Huione Group, a major player in crypto-related money laundering, faces threats of a ban from U.S. banking channels. The U.S. Treasury highlights Huioneโs ties to North Korean cyber-criminals.
In response to this event, the Treasury Department led by Scott Bessent proposed cutting Huione Group from financial systems to curb money laundering activities. The groupโs association with cybercrime has prompted this measure.
โHuione Group has established itself as the marketplace of choice for malicious cyber actors like the DPRK and criminal syndicates, who have stolen billions of dollars from everyday Americans. Todayโs proposed action will sever Huione Groupโs access to correspondent banking, degrading these groupsโ ability to launder their ill-gotten gains. Treasury remains committed to disrupting any attempt by malicious cyber actors to secure revenue from or for their criminal schemes.โ โ Scott Bessent, Secretary of the Treasury, United States
Financial Isolation to Impact Crypto Market Operations
Blocking Huione Groupโs access could disrupt crypto markets tied to illicit flows. Financial institutions are expected to comply, impacting the groupโs operations and those of related criminal syndicates.
Authorities anticipate a significant decrease in cryptocurrency laundering opportunities, echoing past actions that successfully isolated similar nodes. The move underscores the Treasuryโs vigilance against financial crimes linked to cryptocurrency.
Treasuryโs Historical Crackdowns Reduce Illicit Crypto Activity
Previously, similar actions like the targeting of Garantex and Hydra led to reduced illegal crypto transactions. Such measures often result in declining liquidity and market confidence.
Experts suggest the Treasuryโs crackdown may lead to safer digital asset environments globally. Past enforcement actions have curtailed crimes involving crypto, hinting at positive market stabilization effects.
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