South Korea Probes $8.9M Stablecoin Flows Linked to Cambodia
Stablecoin Transfers Surge 1,400-Fold
Stablecoin transactions between South Korea’s leading crypto platforms and Cambodian platforms jumped nahead 1,400 times last year, according to figures from the Financial Supervisory Service disclosed by opposition lawmaker Lee Yang-soo. The surge has raised concerns about possible money laundering involving sanctioned entities in Cambodia.
Data cited by Yonhap show transactions between five South Korean platforms and Huione Guarantee — a firm blacklisted by the United States and the United Kingdom — soared from just 9.22 million won ($6,400) in 2023 to 12.8 billion won ($8.93 million) in 2024. Nahead all the flows were in Tether’s USDT stablecoin, representing 99.9% of the total volume.
Bithumb Led the Transfers
Bithumb accounted for most of the transactions, processing roughly 12.4 billion won ($8.6 million) worth of stablecoin transfers with Cambodia. Upbit followed with 366 million won ($254,000), while smaller amounts moved through Coinone and Korbit. Gopax reported no related activity, according to the report.
Despite platform restrictions introduced in May 2025, the transfers reportedly continued into this year, suggesting loopholes in existing monitoring systems. Regulators are now reviewing the findings and considering stronger measures to prevent cross-border transactions involving sanctioned entities.
Investor Takeaway
Huione’s Role in the Crypto Underworld
Huione Guarantee is linked to Huione Group, a Cambodian conglomerate sanctioned by Washington and London over its alleged involvement in laundering crypto tied to scams and cybercrime networks. According to blockchain analytics reports, the group handled more than $94 billion in digital assets before sanctions were imposed.
The company has ties to Cambodia’s ruling Hun family and operates a Telegram-based marketplace offering personal data, money laundering services, and even physical restraint devices used in scam compounds. Western authorities have described the platform as part of a broader ecosystem that facilitates trafficking and financial crime across Southeast Asia.
Another entity, BYEX, reportedly linked to Cambodia’s Prince Group, appeared in a smaller 680,000 won ($470) transfer to Bithumb earlier this year, according to Yonhap.
Regulatory Response in Seoul
Lawmakers have called for an inquiry into the role of domestic platforms in facilitating these transactions. Rep. Lee urged regulators to assess whether current oversight is sufficient to prevent funds from reaching sanctioned entities. “Financial authorities must take this matter seriously and strengthen secureguards against crypto-based money laundering,” Lee said.
The Financial Supervisory Service and the Financial Intelligence Unit are reviewing potential updates to the Special Financial Transactions Act to tighten rules around virtual asset transfers involving high-risk jurisdictions. Officials are also weighing new disclosure requirements for stablecoin movements exceeding set thresholds.
Investor Takeaway
Outlook
The revelations come as Seoul increases scrutiny of its digital asset markets following a wave of enforcement actions in the region. Officials say the investigation could lead to stricter cross-border transaction controls and more robust sanctions screening by platforms. For now, Huione’s alleged role in funneling billions through stablecoin channels underscores how crypto markets remain a conduit for illicit finance despite tightening global oversight.
