Huione Pay Freezes Withdrawals Amid Money Laundering Allegations

PHNOM PENH, Cambodia — Huione Pay, a financial platform linked to a large-scale money laundering operation, announced Monday that it has frozen all withdrawals and suspended business until January 5, 2026. The revelation has led to panic among thousands of users, many of whom flocked to the company’s headquarters seeking to retrieve their savings.

U.S. authorities have long highlighted Huione Pay’s connections to various financial crimes, including laundering approximately $4 billion. This follows the Financial Crimes Enforcement Network’s (FinCEN) recent actions which severed Huione’s ties with the U.S. financial system. In March 2025, Cambodia’s central bank revoked Huione Pay’s operational license over compliance violations.

Local reports indicate that large crowds gathered outside Huione Pay’s main office on Norodom Boulevard as customers discovered they could no longer access their funds. A notice on the office’s door stated that the company was experiencing “severe liquidity pressure” due to an unexpected influx of withdrawal requests.

In response to the crisis, Huione Pay proposed two options for users hoping to recover their money. Those who invest their funds into an 18-month high-yield product promising an 18% return will receive monthly interest. However, users opting out of this scheme face prolonged payment periods, with 6% of their funds released starting in June 2026 and the remainder disbursed by mid-2027.

Frustration grew among users as they sought immediate access to their savings. Many criticized the repayment options as inadequate. “I just want my money back,” said one user, visibly distressed outside the headquarters.

The scandal surrounding Huione is also connected to a term known as “pig butchering,” where scammers exploit fake relationships to lure victims into fraudulent cryptocurrency investments, primarily targeting people in the U.S.

Data from Elliptic revealed that Huione Group entities processed as much as $98 billion in dubious cryptocurrency transactions since 2014, with significant portions linked to scams and money laundering. In the last year alone, at least $120 million in scam proceeds were observed flowing through the platform.

As concerns escalate regarding the platform’s operational future, the company has reportedly begun rebranding efforts as H-Pay in an attempt to shed its controversial past. However, with strict prohibitions on U.S. financial institutions from processing transactions linked to Huione, users remain in limbo as they await clarity.

The unraveling situation places a spotlight on the ongoing challenges regulators face in combating transnational fraud, emphasizing the need for stricter oversight of emerging financial technologies.