Huione Pay Shutdown Strands Users Worldwide as US Victims Fear Losses

A chaotic scene unfolded outside Huione Pay's headquarters in Phnom Penh this week, as thousands of users discovered their funds had been frozen without warning. The Cambodian financial platform, linked by US authorities to laundering at least £3.02 billion ($4 billion) in illicit cryptocurrency proceeds, suspended all operations on 1 December. It has announced it will remain closed until 5 January 2026.

The sudden shutdown has left customers facing an uncertain future, with the company offering a controversial repayment scheme that could delay access to their money until mid-2027.

Bank Run Sparks Emergency Closure

According to local media reports, large crowds gathered around Huione Pay's main office on Norodom Boulevard after discovering they could no longer withdraw funds. A notice posted on the building's glass doors, written in Chinese, confirmed that the company was experiencing severe liquidity pressure following an unprecedented surge in withdrawal requests.

The platform has offered users two options for recovering their funds, per social media reports. Those willing to lock their money into an 18-month high-yield investment product, advertised at 18% annual returns, will receive monthly interest payments and their full principal at maturity. Those who reject this arrangement face a longer wait, with monthly instalments of 6% starting in June 2026 and the remaining 34% to be released in May 2027.

Neither option has satisfied anxious customers, many of whom simply want immediate access to their savings.

US and UK Authorities Tighten the Noose

The shutdown follows months of escalating regulatory action against Huione Group, the parent company of Huione Pay. In October, the US Treasury's Financial Crimes Enforcement Network (FinCEN) issued a final rule severing the conglomerate entirely from the US financial system.

'The rapid rise of transnational fraud has cost American citizens billions of dollars, with life savings wiped out in minutes,' Treasury Secretary Scott Bessent said in a statement. Treasury data shows US losses from online investment scams have steadily increased over recent years, totalling more than £12.5 billion ($16.6 billion).

This coordinated action—described by the Treasury as the 'largest ever' targeting cybercriminal networks in Southeast Asia—included sanctions by the Office of Foreign Assets Control (OFAC) on 146 targets linked to Cambodia-based criminal enterprises.

A History of Violations and Illicit Activities

Cambodia's financial regulator revoked Huione Pay's licence in March 2025 for compliance violations. The company dismissed the move, claiming it no longer required a banking licence and blaming unnamed adversaries.

Blockchain analytics firms paint a damning picture. Research from Elliptic identified that Huione Group entities received approximately £74.06 billion ($98 billion) in cryptocurrency transactions since 2014, with significant portions linked to money laundering and scams. According to TRM Labs, at least £90.7 million ($120 million) in known scam proceeds flowed through Huione's platforms in 2024 alone.

South Korean exchange Upbit also cut ties with Huione in November, shutting down over 200 accounts after detecting suspicious transactions linked to Huione-associated organisations.

US Victims Fear Total Loss

For victims of the so-called 'pig butchering' investment scams routed through Huione, the platform's collapse offers little relief. These elaborate schemes involve criminals cultivating fake romantic relationships to lure targets into fraudulent cryptocurrency investments, devastating households across the US.

FinCEN investigations found Huione Group laundered at least £28 million ($37 million) from North Korean cyber heists, £27.2 million ($36 million) from investment scams, and £226 million ($300 million) from other cyber frauds between August 2021 and January 2025. The agency also noted that Huione maintained either no anti-money laundering programme or a highly ineffective one.

'Pressure has been building for months—from Cambodia's revocation of its banking licence to FinCEN's move to identify Huione as a primary money laundering concern,' Angela Ang, head of policy and strategic partnerships (APAC) at TRM Labs, told Decrypt. 'This latest development signals that FinCEN's special measures could be the final nail in the coffin.'

What Happens Next

Huione has reportedly rebranded as H-Pay in an apparent attempt to distance itself from the scandal, according to CoinDesk. However, with US financial institutions now prohibited from processing any transactions involving Huione Group entities, the platform's long-term viability remains uncertain.

For ordinary users caught between criminal enterprises and international regulators, the wait for answers—and their money—continues.