DOJ Seizes Huione Group Cloud Infrastructure in Major Crypto Laundering Crackdown
The U.S. Department of Justice (DOJ) has struck at the technical backbone supporting large-scale cryptocurrency money laundering operations by seizing a cloud computing account used by subsidiaries of Cambodia-based Huione Group. The DOJ announced that the account hosted backend infrastructure for services allegedly assisting in the transfer of proceeds from cryptocurrency investment frauds, cyber scams, and other crimes. The account was used to move funds across blockchain networks and into the legitimate banking system without detection.
According to the DOJ, Huione Guarantee operated Telegram channels containing discussions regarding illicit products and services, including the sale of stolen credit card and identity information, malware-enabled thefts, procurement of individuals for human trafficking schemes, and assistance with laundering the proceeds of romance and investment scams. Huione Guarantee also provided escrow services for criminals transacting on its platforms to facilitate transactions, including money launderers laundering cryptocurrency, thereby facilitating the movement of considerable funds stolen by Southeast Asian scam centers.
This action is part of broader efforts to disrupt financial services that support cyberthieves. The FBI reports that Americans suffered over $20 billion in losses to cybercrime in 2023, a 26% single-year increase.