South Korean Crypto Leaders Stop $8.9 Million Money Laundering Operation Linked to Blacklisted Cambodian Company

Upbit, the largest crypto exchange in South Korea, has joined other domestic platforms in halting transactions with Cambodia-based Huione Guarantee—a service associated with international criminal organizations—as authorities ramp up efforts to address money laundering concerns. According to data from the Financial Supervisory Service (FSS), cryptocurrency transfers between Korean exchanges and Huione Guarantee skyrocketed by 1,400 times to reach $8.9 million in 2024. This surge led all five leading Korean exchanges, including Upbit, Bithumb, and Coinone, to suspend operations with the Cambodian entity. The decision comes after the U.S. and U.K. governments imposed sanctions on Huione Group, the parent company of Huione Guarantee, over allegations of laundering proceeds from fraud, cybercrime, and human trafficking,

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Information obtained by opposition lawmaker Rep. Lee Yang-soo from the FSS reveals a sharp increase in international transfers. In 2024, the total reached 12.8 billion won ($8.9 million), a dramatic rise from just 9.22 million won the year before. Bithumb had the highest volume, with its transactions soaring to 12.4 billion won from 9.22 million won in 2023. Upbit, which previously had no transactions with Huione, recorded inflows and outflows totaling 366.9 million won. The activity has persisted into 2025, amounting to 3.15 billion won as of October 20, according to the report. The majority of these transfers were made in

(USDT), a stablecoin popular for its high liquidity and ease of use in international transactions.

The virtual asset division of Huione Group is believed to act as a financial channel for criminal operations in Southeast Asia. Both the U.S. Treasury and UK authorities have blacklisted the company for its suspected involvement in laundering digital assets tied to illegal activities. South Korean regulators acted quickly: Dunamu, the operator of Upbit, flagged Huione to authorities after identifying questionable transactions and enforced a complete ban on transfers. Bithumb soon followed, prohibiting all deposits and withdrawals related to Huione in May 2025, according to Yahoo Finance.

This rapid growth has sparked concern among lawmakers and regulators about potential weaknesses in the crypto sector. The FSS has strengthened anti-money laundering (AML) regulations, requiring exchanges to conduct more thorough checks on overseas partners. Opposition leaders have urged for harsher consequences for violations, stressing the importance of preventing South Korea from becoming a center for illegal financial activity. Meanwhile, Huione Group has rejected the accusations, but its statements have since been removed from its website, the report noted.