Huione, the Cambodian financial services provider recently sanctioned by the U.S. Treasury for facilitating billions in illicit cryptocurrency transactions, has reportedly ceased operations after experiencing a devastating bank run. The collapse marks a significant development in the global crackdown on crypto-enabled financial crime networks operating in Southeast Asia.
A major Cambodian financial institution linked to large-scale cryptocurrency-based money laundering has shuttered its operations following a mass exodus of customer funds, according to reports emerging from the region. Huione, which operated payment processing and financial services across Southeast Asia, became the target of U.S. Treasury sanctions in late 2024 for allegedly facilitating billions of dollars in transactions connected to illegal online gambling, human trafficking operations, and cybercrime syndicates.
The institution's sudden collapse came within weeks of the U.S. Office of Foreign Assets Control (OFAC) designating Huione and several associated entities as specially designated nationals, effectively cutting them off from the U.S. financial system. The sanctions prompted a panic among account holders, who rushed to withdraw their funds before potential asset freezes could take effect. Sources familiar with the situation indicate that Huione was unable to meet the surge in withdrawal demands, forcing the company to halt all business operations.
Huione had emerged as a critical financial infrastructure provider for what investigators describe as a sprawling ecosystem of fraudulent operations based in Cambodia and neighboring countries. The platform reportedly processed cryptocurrency payments that enabled criminal enterprises operating from compound-style facilities, where victims of human trafficking were forced to conduct online scams targeting individuals worldwide.
The U.S. Treasury's action against Huione represents part of a broader international effort to dismantle financial networks supporting organized crime in the region. Investigators estimated that Huione-linked accounts processed upwards of $11 billion in suspicious cryptocurrency transactions, making it one of the largest facilitators of crypto-enabled crime ever sanctioned by U.S. authorities.
The collapse of Huione raises significant questions about the fate of potentially millions of dollars in customer deposits and the broader impact on Cambodia's financial sector. While some account holders may have been legitimate businesses or individuals, the institution's client base reportedly included numerous entities involved in illegal activities. Regional financial regulators have yet to announce whether any customer protection measures or asset recovery proceedings will be implemented.
This development underscores the continuing challenges facing international regulators attempting to combat cryptocurrency's role in facilitating cross-border financial crime, particularly in jurisdictions with limited regulatory oversight.