Cambodia-based financial service Huione Pay has suspended operations and frozen withdrawals until January 5, 2026, following a massive surge in user withdrawal requests that sparked panic and long queues at its Phnom Penh headquarters. This halt comes amid escalating U.S. sanctions targeting the Huione Group for alleged money laundering linked to cryptocurrency scams and North Korean cyber heists. The development underscores growing regulatory pressure on Cambodia’s shadowy financial networks, raising concerns over user funds and the broader illicit economy.
Timeline of Huione Pay’s Regulatory Troubles
Huione Pay, part of the expansive Huione Group conglomerate, faced its first major setback in March 2025 when Cambodia’s central bank revoked its banking license over compliance failures and suspected illicit activities. The company dismissed the revocation, claiming operations no longer required such licensing and blaming unnamed adversaries. By May 2025, the U.S. Financial Crimes Enforcement Network (FinCEN) designated Huione Group a primary money laundering concern, mandating U.S. financial institutions to cut ties and effectively blacklisting it from the global banking system.
Tensions escalated in October 2025 with coordinated U.S. and UK actions excluding Huione from dollar-based transactions, described by the U.S. Treasury as targeting its role in laundering proceeds from virtual currency scams and cyber thefts. In November, South Korean crypto exchange Upbit froze over 200 accounts linked to Huione due to suspicious flows indicative of laundering. These measures followed reports from blockchain analytics firms like Elliptic, which estimated Huione’s platforms processed up to $98 billion in illicit crypto transactions, including $37 million from North Korean hacks between 2021 and 2025.
The Trigger: Bank Run and Operational Freeze
The suspension was announced after a sudden “massive surge in withdrawal requests” overwhelmed Huione Pay’s liquidity, leading to a classic bank run scenario with crowds gathering outside locked branches in Phnom Penh. Social media images showed frustrated users queued at entrances, prompting the company to post notices in Chinese outlining a delayed payout plan. Operations are paused until early January 2026, with branches shuttered and signage reportedly removed in some locations as part of a rebrand to “H-Pay”.
Huione offered affected users two options: convert funds into high-yield products with an 18-month lockup for full principal return, or opt for proportional monthly withdrawals over six months. Critics view this as a stalling tactic amid frozen assets, exacerbating fears of major losses in a platform already tainted by scandal. Telegram channels linked to Huione Guarantee, a darknet marketplace boasting over $24 billion in turnover, were blocked, though new services like Tudou Guarantee—partly Huione-owned—emerged rapidly.
Allegations of Money Laundering and Crypto Scams
U.S. authorities have long accused Huione Group of serving as “critical infrastructure” for Cambodia’s $19 billion scam economy, facilitating “pig butchering” frauds, cyber heists, and sanctions evasion via stablecoins and crypto exchanges. FinCEN highlighted Huione’s role in laundering billions, including funds from Southeast Asian fraud networks and North Korean actors, with transaction volumes reportedly rising post-sanctions per TRM Labs and Chainalysis. Humanity Research Consultancy pegged Huione’s operations at 60% of Cambodia’s GDP, intertwining it with industrialized scam centers.
Blockchain trackers like Elliptic linked Huione Pay and its Huione Guarantee platform—a Telegram-based illegal trading hub—to $98 billion in dirty crypto flows before partial shutdowns in 2025. Despite sanctions, resilience persisted through workarounds, though recent events signal cracking foundations. Upbit’s account freezes in November underscored ongoing illicit activity detection.
User Impact and Market Reactions
Hundreds of customers, many holding significant savings, now face uncertainty as frozen withdrawals amplify distrust in Cambodia’s unregulated fintech sector. Local media reported widespread alarm, with queues persisting despite closures, evoking classic financial panics. Crypto markets registered bearish sentiment, with analysts citing regulatory failures as a downside risk for illicit finance-linked assets.
The halt poses ripple effects for users in Huione’s ecosystem, including those tied to its payment services and guarantee platforms, potentially trapping funds in high-risk products. Observers note this as the latest fallout from international crackdowns, diminishing Huione’s viability.
Broader Implications for Cambodia’s Financial Crime Landscape
Huione Pay’s collapse highlights vulnerabilities in Cambodia’s fintech amid global anti-money laundering (AML) efforts, where scam operations rival national GDP. U.S. sanctions, combined with local license revocations, aim to dismantle these networks, though evasion tactics like rebrands persist. For the crypto sector, it reinforces scrutiny on platforms enabling laundering, prompting exchanges like Upbit to act decisively.
As President Donald Trump’s administration prioritizes financial security post-2024 reelection, such cases signal intensified U.S. pressure on offshore havens [contextual note]. Cambodian authorities may face calls for deeper probes, balancing economic reliance on Chinese-linked firms against international compliance. Users and investors should monitor updates, prioritizing licensed alternatives amid rising AML enforcement.