Cryptocurrency Transfers Between Korean Exchanges and Cambodia's Huione Surge 1,400% to $8.9M

Crypto Transfers Between Korean Exchanges and Cambodia’s Huione Jump 1,400x to $8.9M

Cryptocurrency transactions between South Korea's major exchanges and Cambodia's Huione Guarantee have skyrocketed nearly 1,400% in the past year.

Key Takeaways:

Cryptocurrency transfers from South Korea’s leading exchanges to Cambodia’s Huione Guarantee soared to $8.9 million in 2024.
Huione Group, facing sanctions from the US and UK, is suspected of laundering funds connected to fraud, cybercrime, and human trafficking.
All five major Korean exchanges have halted transactions with Huione as regulators enhance anti-money laundering measures.

The significant increase has raised concerns among regulators and politicians regarding potential connections to transnational criminal organizations active in Southeast Asia.

Major Korean Exchanges Suspend Transfers after Significant Increase in Transactions

According to information from the Financial Supervisory Service (FSS), provided by opposition lawmaker Rep. Lee Yang-soo, transfers between South Korea's five largest crypto exchanges— Upbit, Bithumb, Coinone, Korbit, and Gopax— and Huione Guarantee reached 12.8 billion won (approximately $8.9 million) in 2024. This amount is a substantial increase from just 9.22 million won in the previous year, prompting all five exchanges to suspend operations with the Cambodian platform.

Huione Group, the parent company headquartered in Phnom Penh, has been sanctioned by both US and UK authorities for allegedly laundering cryptocurrencies linked to fraud, cybercrime, and human trafficking. It is believed that the firm’s virtual asset division serves as a crucial financial link for these illicit networks.

Bithumb experienced the most significant increase, with transactions rising from 9.22 million won in 2023 to 12.4 billion won last year. Upbit, which had not previously engaged with Huione, reported 366.9 million won in transfers.

As of October 20, 2025, activity continues, totaling 3.15 billion won in transactions, far surpassing levels seen prior to 2024. Most of these cross-border transfers were conducted using Tether (USDT), a stablecoin tied to the U.S. dollar, known for its liquidity and ease of conversion, making it a popular choice for international remittances.

In response, South Korean authorities acted swiftly. Upbit's operator, Dunamu, reported Huione to regulators after identifying suspicious transactions and linked wallets, leading to a comprehensive transfer ban. Bithumb similarly stopped all deposits and withdrawals associated with Huione in early May.

Additionally, the FSS disclosed that the Cambodian branches of four South Korean banks—Jeonbuk Bank, KB Kookmin Bank, Shinhan Bank, and Woori Bank—had paid 1.45 billion won in interest to Prince Group, another Cambodian entity under scrutiny for potential financial misconduct.

Financial regulators, spearheaded by Financial Services Commission Chairman Lee Eog-weon, have committed to increased oversight, including preemptive account freezes and more stringent anti-money laundering (AML) regulations.

South Korean Retail Investors Invest $1.24B in US Tech and Crypto Stocks

In another development, it was reported that South Korean investors utilized the Chuseok holiday to engage in high-risk trading, investing $1.24 billion into US tech and crypto-related assets during the market closure from October 3 to 9, based on data from the Korea Securities Depository.

This trading surge was led by leveraged ETFs and high-growth stocks as traders aimed to capitalize on the momentum in the US market amid optimism about tech resilience and domestic economic stimulus.

Notable purchases included the Direxion Daily Tesla Bull 2X ETF, which saw $151 million in investments, followed by Iris Energy ($105 million), Meta Platforms ($100 million), and Tesla ($96 million). Investors also bought $95 million worth of the T-REX 2X Long BMNR Daily Target ETF, which tracks BitMine Immersion Technologies with double exposure, demonstrating a growing interest in crypto-related equities.

However, this buying frenzy ended abruptly due to escalating US-China trade tensions, leading to a worldwide market decline that erased much of the prior week’s gains.

In August, South Korea's financial regulator took steps to mitigate risky lending practices in the digital asset landscape by directing local exchanges to suspend all crypto lending services until a suitable regulatory framework is established.