(Phnom Penh, 6th - Comprehensive Report) Cambodian third-party payment platform Huione Pay has been hit with international sanctions due to its involvement in illegal activities and online scams in Southeast Asia, triggering a large-scale run on funds. This week, the platform announced a freeze on withdrawals and suspension of operations, intensifying user panic.
On December 1, Huione Pay issued a notice stating it would cease business operations until January 5 next year. The National Bank of Cambodia promptly responded on December 3, stating that Huione Pay's operating license had been revoked as early as last year for violating financial regulations, the company's registration was legally liquidated and cancelled this year, and it no longer holds legal business status.
According to the Cambodia-China Times, Huione Pay's parent company, Huione Group, is accused of being a “super hub” for cross-border criminal money laundering. In May this year, the US Treasury Department's Financial Crimes Enforcement Network (FinCEN) listed it as a money laundering financial institution, requiring US financial institutions to sever banking and remittance relationships, and accusing it of assisting Southeast Asian scam organizations in online theft and cryptocurrency investment frauds.
The New York Times revealed that the US Treasury Department blacklisted Huione Group in November this year, and since August 2021, it has assisted criminals in transferring huge sums of money through complex operations, with involved funds exceeding US$4 billion (about S$5.2 billion). Blockchain analytics firm Elliptic pointed out that since 2021, Huione’s cryptocurrency transaction volume reached US$26.8 billion, making it the world’s largest illegal online trading platform.
In addition, South Korea’s cryptocurrency exchange Upbit terminated more than 200 accounts related to Huione in November this year due to suspected virtual asset money laundering. Korean police have intervened in the investigation and requested virtual asset transfer records.
The Huione Pay incident highlights the risks of cross-border financial regulation and cryptocurrency trading, sounding the alarm for financial security in Southeast Asia and globally.