Huione Group Shutdown: Major Blow to Crypto Crime Networks

FinCEN’s recent action against Cambodia-based Huione Group marks a significant step in fighting crypto-related financial crimes.

On May 1, 2025, the U.S. Treasury’s Financial Crimes Enforcement Network designated Huione as a “primary money laundering concern” under Section 311 of the USA PATRIOT Act, effectively cutting the group off from the U.S. financial system.

According to Chainalysis research, Huione Group helped launder at least $4 billion in illegal funds between 2021 and January 2025. This money came from various criminal activities, including romance scams (also known as “pig butchering”), North Korean hacking operations, and criminal groups working across Southeast Asia.

How Guarantee Services Like Huione Group Keep Crypto Crime Going

Huione isn’t alone in this space. These “guarantee services” work as informal escrow platforms for criminal transactions. They help criminals buy and sell things like fake IDs, bank accounts for money laundering, scam tools, and even satellite equipment.

What makes these services hard to shut down is how they’re organized. Many sellers work across multiple platforms at once. If one service gets shut down, they simply move to another. For criminals, it doesn’t matter which platform they use as long as someone trustworthy handles the transaction.

Unlike many similar services, Huione had an actual website, though its main operations still happened on Telegram. Most smaller services skip websites entirely and operate solely through Telegram groups.

Why Telegram Remains the Heart of Crypto Crime

Telegram offers everything criminals need: quick setup, anonymous accounts, and encrypted messages. A new group can be created in minutes without registering domains or building websites.

These groups build trust through social connections. Moderators settle disputes, agents build reputations, and bots help manage trades – all while staying mostly anonymous.

Even though Telegram removed Huione accounts after FinCEN’s action, history suggests this won’t end the problem. When similar enforcement actions happened in the past, criminal networks simply spread out and adapted.

This pattern appears to be repeating. Another platform, Xinbi, had its Telegram channels removed but has already posted new contact information. Huione itself may be planning a comeback—the company previously bought a 30% stake in Tudou Guarantee and developed USDH, a token they claim can’t be frozen.

For now, FinCEN’s action disrupts one major player but leaves the underlying problem largely intact. The challenge for authorities remains targeting the infrastructure that makes crypto crime possible, not just individual organizations.