• Huione Pay branches locked doors on Monday, with social media showing long queues of customers unable to access funds.

• Sanctions cut Huione off from global banking systems in October, following FinCEN’s designation as a primary money laundering concern.

• U.S. Treasury estimates at least $4 billion in illicit funds flowed through Huione since 2021, including ties to the $235 million WazirX hack and North Korea’s Lazarus Group.

Huione Pay closure disrupts Cambodia’s scam economy as sanctions bite. Learn how U.S. and UK actions are targeting crypto-linked laundering—stay informed on global financial crackdowns today.

What is the Impact of Huione Group Sanctions on Cambodia’s Financial Landscape?

Huione Group sanctions have triggered the abrupt closure of Huione Pay branches across Cambodia, severely impacting access to financial services amid a crackdown on the country’s industrialized scam operations. This move follows months of regulatory pressure, including license revocations and international designations, which have isolated the conglomerate from global banking networks. The fallout highlights the intersection of traditional finance and illicit crypto activities in Southeast Asia.

How Has Huione Pay’s Shutdown Affected Customers and the Broader Economy?

The shutdown of Huione Pay services has left thousands of customers in limbo, with reports of crowds gathering outside locked branches on December 1, 2025, unable to withdraw cash. Social media images captured the chaos, showing frustrated queues and notices posted at entrances announcing the halt. This development caps a series of escalating measures against the Huione Group, founded around 2014 and linked to high-profile figures in Cambodian politics, including board member Hun To, cousin of Prime Minister Hun Manet.

Huione Pay, a key arm of the conglomerate, targeted Chinese-speaking users with payment processing, bill settlements, and transfers. Its subsidiary, once known as Huione Guarantee, facilitated escrow services that connected parties involved in money laundering, scam templates, and even restricted items like tasers via websites and Telegram channels. According to U.S. Treasury officials, at least $4 billion in suspicious transactions—potentially as high as $11 billion per other estimates—passed through these services since 2021. These funds included proceeds from virtual currency scams, cyber heists like the $235 million WazirX exchange breach, and activities tied to North Korea’s Lazarus Group.

Expert analysis underscores the severity. Angela Ang, Head of Policy and Strategic Partnerships for APAC at TRM Labs, noted in a statement to COINOTAG that pressure had mounted for months, from Cambodia’s March license revocation for compliance issues to FinCEN’s May 1 designation of Huione as a primary money laundering concern. “Huione may have been cavalier at first, but the impact has clearly caught up. This latest development signals that FinCEN’s special measures could be the final nail in the coffin,” Ang said.

Cambodia’s role as a hub for large-scale online scamming exacerbates the situation. The United Nations estimated in 2023 that over 100,000 individuals operate within scam compounds, many under coercive conditions. Investigators from Humanity Research Consultancy, in a May report, pegged the scam economy at 60% of Cambodia’s GDP, valued at $19 billion annually, with Huione’s financial infrastructure described as “critical” to sustaining these networks.

Regulatory actions intensified this year. Cambodia’s financial regulator stripped Huione Pay of its banking license in March, citing violations, though the group downplayed it by claiming operations no longer needed such approval and attributing the move to unnamed rivals. FinCEN’s escalation in May prohibited U.S. institutions from engaging with Huione, and by October, the U.S. and UK jointly severed the group’s access to dollar-based transactions. The U.S. Treasury stated at the time: “For years, Huione Group has laundered proceeds of virtual currency scams and heists on behalf of malicious cyber actors.”

Despite these blows, Huione demonstrated adaptability. As its primary Telegram channels went dark, alternatives like Tudou Guarantee—30% owned by Huione—saw swift uptake. The group even ventured into blockchain with USDH, a dollar-pegged stablecoin launched on the Tron network and the Xone blockchain, formerly Huione Chain, promoted for its “censorship-resistant” features. This pivot into crypto underscores the challenges of fully dismantling such entities in regions where traditional oversight lags.

The economic ripple effects are profound. With Huione’s services frozen, small businesses and everyday users reliant on its platforms face immediate hardships, while the scam industry’s shift to underground channels could prolong vulnerabilities. International bodies, including the UN, continue to advocate for stronger regional cooperation to address human trafficking and financial crimes intertwined with these operations.

Frequently Asked Questions

What Led to the Huione Pay Closure in Cambodia?

The Huione Pay closure resulted from cumulative international sanctions, including U.S. and UK actions in October 2025 that barred the Huione Group from global banking. This followed Cambodia’s license revocation in March and FinCEN’s money laundering designation in May, aimed at curbing the group’s facilitation of over $4 billion in illicit crypto-related funds since 2021.

Is Huione Group Still Operating Any Crypto Services After the Sanctions?

Yes, despite sanctions, Huione Group persists with crypto initiatives like the USDH stablecoin on Tron and Xone blockchains. These efforts represent a shift toward decentralized finance, though their long-term viability remains uncertain amid ongoing global scrutiny of the conglomerate’s ties to scam networks in Cambodia.

Key Takeaways

• Regulatory Pressure Peaks: U.S., UK, and Cambodian actions have isolated Huione, highlighting coordinated international efforts against money laundering in Southeast Asia’s scam hubs.
• Customer Impact Immediate: Branch closures halted withdrawals, affecting thousands and exposing reliance on sanctioned financial services for daily transactions.
• Crypto Ties Persist: Huione’s USDH stablecoin launch signals adaptation, but experts warn it may perpetuate illicit flows unless broader blockchain regulations tighten.

Conclusion

The Huione Group sanctions and subsequent Huione Pay closure mark a pivotal blow to Cambodia’s entrenched scam economy, disrupting financial pipelines that funneled billions in crypto scam proceeds. As authorities like the U.S. Treasury and FinCEN intensify measures, the resilience shown through ventures like USDH stablecoin raises questions about the efficacy of current strategies. Stakeholders must prioritize enhanced monitoring and cross-border collaboration to safeguard global financial integrity—monitor developments closely for evolving impacts on Southeast Asian crypto landscapes.