DOJ Seizes Huione Group Cloud Infrastructure in Major Crypto Laundering Crackdown

The U.S. Department of Justice says it has struck at the technical backbone supporting large-scale cryptocurrency money laundering operations.

The DOJ has announced the seizure of a cloud computing account used by subsidiaries of Cambodia-based Huione Group.

The agency says 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 allegedly used to move funds across blockchain networks and into the legitimate banking system without detection.

“Huione Guarantee is alleged to have operated Telegram channels that contained discussions regarding illicit products and/or services, ranging from the sale of stolen credit card and identity information, the fruits of malware-enabled thefts, the procurement of individuals for human trafficking schemes, as well as 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. In doing so, Huione Guarantee facilitated the movement of considerable funds stolen by Southeast Asian scam centers.”

The move is part of broader efforts to disrupt financial services that support cyberthieves.

The FBI says Americans reported over $20 billion in losses to cybercrime last year, a 26% single-year increase.

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