Crypto Transfers Between Korean Exchanges and Cambodia’s Huione Jump 1,400x to $8.9M

According to South Korea’s Financial Supervisory Service (FSS) data, the cryptotransfers between Huione Guarantee and 5 leading South Korean cryptoexchanges marked a whopping increase of 1,400 times from the previous year, touching $8.9 million. The data release has prompted the South Korean regulators to tighten the oversight, and the leading cryptocurrency exchanges have suspended all transfers with the group. The Huione group was earlier sanctioned by the U.S and U.K. governments for criminal activities, including money laundering.. 

The Record Surge in Crypto Transfers Prompts Tighter Oversight

The cryptotransfers between Huione Guarantee and 5 leading South Korean crypto exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, and Huione Guarantee reached 12.8 billion won, which can be translated to $8.9 million, in 2024, as per the data from FSS.  The data shows a massive spike from the 9.22 million won from the previous year, which is about $6,432 USD. The surge in crypto transfer and the regulators’ push for tighter oversight have prompted all the crypto exchanges in South Korea to temporarily cease all dealings with the Huione Group. 

The crypto transfer data gathered by opposition lawmaker Rep. Lee Yang-soo from the FSS has put the regulators on high alert. Financial Services Commission Chairman Lee Eog-weon pledged tighter oversight regarding the matter. The FSS may proceed with rigorous measures such as preemptive account freezes and stricter anti–money laundering controls. Earlier, Dunamu, Upbit’s operator, had reported Huione to regulators on the grounds of suspicious transactions.

The Huione Group: A Massive Criminal Empire Sanctioned By the U.S and U.K

Cambodia’s Huione Guarantee is a part of a larger Phnom Penh-based Huione Group, infamous for its wide spectrum of illicit activities ranging from cybercrimes, money laundering, large-scale scams, to human trafficking. Early this year, in May, the Huion Group was accused of money laundering by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). 

According to the Financial Crimes Enforcement Network (FinCEN), the group has laundered illegal money worth around US$4 billion from August 2021 to January 2025. The group was designated as a “primary money laundering concern” by FinCEN. On October 14, the FinCEN issued a final rule that severs the Huion Group from the U.S. financial system; the rule will be effective on November 17, 2025.

The mounting international pressure led to Telegarm banning the groups associated with the group. Besides, the U.S, the U.K. also sanctioned the group. The group’s massive scale crimes involving billions have prompted joint action from both countries. According to FinCEN,  the group acts as a node for laundering proceeds of cyber heists done by North Korea (Democratic People’s Republic of Korea) and transnational criminal organizations in Asia. A report from the UN constituted the Multilateral Sanctions Monitoring Team (MSMT) published in the past week, October 22, has accused North Korea of fraudulent IT work, cryptocurrency theft, and cyber espionage to fund unlawful development of its WMD and ballistic missile programs.

Final Thoughts

The misuse of cryptocurrency may lead to increased scrutiny and regulatory tightening. The governments and market regulators across the world are debating crypto regulations, but a comprehensive legal framework with global consensus is yet to form in the crypto space.  A regulated crypto market with a proper legal framework, fostering the ecosystem without compromising security, is the need of the hour.