Huione Group Funnels $12M Through South Korean Exchanges Amid Trafficking Probe: Bithumb Processes Bulk of Suspicious USDT Transactions
Introduction
In a stark revelation linking cryptocurrency exchanges to transnational crime, Cambodian conglomerate Huione Group has been identified as laundering $11.8 million (approximately 15.9 billion KRW) through major South Korean digital asset platforms. Data from South Korea’s Financial Supervisory Service (FSS), disclosed by the office of ruling People Power Party lawmaker Lee Yang-soo, shows that the funds, moved in Tether (USDT), are now under investigation for potential connections to kidnapping, human trafficking, and voice phishing operations based in Cambodia. The case highlights the persistent challenges of regulating crypto flows and comes just after the United States government sanctioned Huione Group, labeling it a transnational crime organization with suspected ties to North Korean cybercrime.
Bithumb Processed Most of the Suspicious Transactions
The data reveals a concentrated flow of funds through a single exchange. According to the FSS records, Huione’s subsidiary, Huione Guarantee, conducted extensive transactions with South Korean won-market crypto exchanges over a three-year period. The total deposits and withdrawals in USDT amounted to about 15.9 billion KRW, or roughly $12 million. Of this total, Bithumb processed the overwhelming majority, handling approximately 14.6 billion KRW. The remaining transactions were distributed between other major domestic exchanges: Upbit accounted for 889 million KRW and Korbit for 454 million KRW.
This distribution is significant for understanding the operational patterns of illicit finance. The substantial volume channeled through Bithumb suggests it may have been a preferred on-ramp or off-ramp for converting between USDT and the South Korean won. The activity underscores the critical role that specific, large-volume exchanges can inadvertently play in the money laundering lifecycle, even within a regulated jurisdiction like South Korea.
Possible Links to Kidnapping and Sanctions
The timing of these financial movements has raised alarms for investigators. South Korean authorities noted that transactions between Bithumb and Huione surged notably in 2024. This period coincides with a significant increase in reports of South Korean nationals being lured to Cambodia under the pretense of high-paying job offers, only to be detained and forced to participate in online fraud schemes.
On October 18, 2025, the South Korean government repatriated 64 of its citizens who had been arrested in Cambodia for involvement in such online fraud operations. Reports indicated that many were held captive by Chinese crime syndicates. This context provides a direct link between the flow of funds and real-world criminal activities. Investigators are now actively probing whether the $11.8 million laundered through South Korean exchanges is directly tied to these kidnapping, confinement, and human trafficking cases.
Who Is the Huione Group?
Huione Group presents a facade of legitimacy as a Cambodian conglomerate, but its subsidiary, Huione Guarantee, has been accused of being a central hub for illicit finance. The platform was initially launched in 2021 as a peer-to-peer marketplace for cars and real estate. However, it rapidly evolved into a major exchange hub for Chinese yuan and USDT among criminal networks operating across Southeast Asia.
The group first drew significant international attention in July 2024, when blockchain analytics firm Elliptic reported that Huione Guarantee had become a key platform for cryptocurrency laundering. Elliptic estimated that the platform had processed approximately $11 billion in illicit funds, linking it to pig-butchering scams, investment fraud, and other large-scale cybercrimes. This background establishes Huione not as a minor player but as a significant conduit for criminal capital in the region.
Crackdown and US Sanctions
The international response to Huione Group’s activities culminated in decisive action by the United States. On October 14, 2025, the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) imposed sanctions on Huione Group. This action effectively cut the conglomerate off from the U.S. financial system.
The Treasury cited confirmed links between Huione Group and North Korean cybercrime operations, in addition to its role in large-scale virtual asset scams across Southeast Asia. This designation under Section 311 of the USA PATRIOT Act is a powerful tool that prohibits U.S. financial institutions from maintaining correspondent accounts for the group and imposes strict due diligence requirements on their foreign counterparts. Concurrently, the U.S. Department of Justice announced the seizure of a record $15 billion in bitcoin linked to these Southeast Asian crypto scam operations, signaling a coordinated and massive crackdown.
Strategic Conclusion
The case of Huione Group funneling $12 million through South Korean exchanges is more than an isolated money laundering event; it is a symptom of a broader challenge facing the global crypto ecosystem. It demonstrates how pseudo-anonymous stablecoins like USDT can be exploited by sophisticated criminal organizations to move and legitimize proceeds from heinous crimes like human trafficking.
For crypto readers and market participants, this development serves as a critical reminder of the increasing regulatory scrutiny on cross-border transactions and the compliance obligations of centralized exchanges. The fact that the majority of funds flowed through one of South Korea's largest registered exchanges, Bithumb, will likely prompt stricter enforcement of Anti-Money Laundering (AML) and Know Your Customer (KYC) policies across the board.
Moving forward, readers should watch for two key developments: first, any regulatory actions or policy changes announced by South Korea’s Financial Services Commission (FSC) in response to this incident, and second, further international sanctions or designations against other entities within this vast Southeast Asian scam network. The collaboration between blockchain analytics firms like Elliptic and Chainalysis with global law enforcement will continue to be pivotal in tracing and dismantling these complex financial networks. As the line between digital and traditional finance blurs, the industry's ability to foster transparency and security will be paramount to its long-term legitimacy and stability.
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