Huione Wallets Transfer $1 Billion to Crypto Exchanges Despite FinCEN Action

Major centralized cryptocurrency exchanges have received nearly $1 billion in USDt transfers from wallets associated with Huione since the illicit marketplace was allegedly shut down following regulatory action.

FinCEN Designation and Continued Operations

The US Financial Crimes Enforcement Network (FinCEN) designated Huione as a primary money laundering concern under the PATRIOT Act on May 1, 2024. Despite this designation, forensics experts remain divided on whether the platform has truly ceased operations.

According to exclusive research from Global Ledger, blockchain analytics reveal significant ongoing activity from Huione-linked wallets between May 1 and June 17. The data shows $10.13 billion in Tether USDt transactions on Tron and $219 million on Ethereum, with $942.9 million ultimately flowing into centralized exchanges.

Money Laundering Through Indirect Routes

Yury Serov, investigations lead at Global Ledger, explains that Huione-associated funds continue reaching major exchanges through sophisticated routing methods. These transactions often utilize nested service providers, over-the-counter desks, and layered transactions designed to obscure the original source.

The continued movement patterns suggest operational use despite claims of shutdown, with funds systematically reaching major centralized exchanges through indirect channels.

Huione Group Structure and Polish Registration

FinCEN's designation prohibits US financial institutions from maintaining correspondent accounts with the controversial conglomerate based in Cambodia and registered in Hong Kong. The organization has been accused of serving as a transnational fraud and money laundering platform used by cybercrime groups, including North Korea's state-sponsored Lazarus Group and networks engaged in pig butchering scams.

Three Main Subsidiaries

The Huione Group operates through at least three known subsidiaries:

Huione Guarantee - A Telegram-based illicit market platform that facilitated the sale of stolen data and laundering of scam proceeds

Huione Pay - A crypto and fiat payments service with brick-and-mortar outlets across Cambodia

Huione Crypto - A centralized exchange registered in Poland in mid-2023 but primarily operating from Cambodia

Stealth Operations and Website Reappearance

Multiple Huione-related websites and social channels went offline following the FinCEN action but have reappeared under new domains. One such site, Super-exchange.co, remained accessible as of July 8, displaying a notice that crypto operations would be suspended as of June 30, 2025, yet the site remains functional.

The Poland-registered entity operates under the broader Huione structure, with blockchain infrastructure that cannot be separated from other subsidiaries due to interlinked wallet systems.

Expert Analysis on Shutdown Claims

Blockchain analytics firms disagree on the extent of Huione's shutdown. Huione Guarantee, described as the largest darknet market ever with over $24 billion in transaction volume, announced suspension of operations on May 13 following Telegram channel crackdowns.

Conflicting Views from Analytics Firms

Chainalysis observed increased activity connected to Huione's marketplace operations in June, suggesting continued functionality despite shutdown claims. However, Elliptic contests this view, stating that Huione Guarantee's activity has essentially ceased.

Elliptic distinguishes between Huione Guarantee and Huione Pay, noting they engaged in different activities with distinct crypto wallet infrastructure. While Huione Pay continues high-volume transactions, Huione Guarantee's transactions have effectively stopped according to their analysis.

Rise of Successor Marketplaces

The closure of Huione Guarantee has led to the emergence of at least 30 new illicit marketplaces attempting to fill the gap. Users were directed to an alternative marketplace called Tudou, in which Huione reportedly holds a 30% stake.

Pattern of Darknet Market Resilience

The proliferation of new marketplaces following Huione Guarantee's collapse mirrors what occurred after the fall of Hydra Market, once the dominant darknet platform. Chainalysis identified Hydra as the highest-earning darknet market of 2022 despite its April shutdown following US Treasury sanctions.

Historical Examples of Service Continuation

Similar patterns emerge across sanctioned crypto services:

Garantex - The Russia-linked crypto exchange sanctioned in 2022 reportedly rebranded as Grinex and continued facilitating transfers, with $1.66 billion flowing from linked wallets to centralized exchanges

eXch - The crypto swapping service announced shutdown after German authorities seized servers but quietly resumed operations in stealth mode according to TRM Labs

Current Status and Ongoing Activity

Despite public shutdown announcements, the Huione Group appears to remain active through indirect channels. The organization maintains its 30% stake in Tudou, now considered the leading successor to the Huione Guarantee marketplace.

Wallet activity linked to Huione Pay and crypto exchange services indicates the group has not disappeared from the blockchain landscape, continuing to facilitate significant cryptocurrency movements through sophisticated routing mechanisms.

Regulatory Implications

The continued operation of Huione-linked services highlights the challenges regulators face in shutting down decentralized criminal networks. The ability of these organizations to rapidly rebrand and continue operations through indirect channels demonstrates the persistent nature of illicit crypto activity.

The case underscores the importance of ongoing blockchain surveillance and the need for enhanced international cooperation in combating cryptocurrency-enabled financial crimes.