FinCEN Targets H-Pay as Huione Workaround in Crypto Scam Crackdown

Americans lost at least $10bn to Southeast Asia scam operations in 2024, a 66% increase from the prior year, Treasury said. Many of those schemes are crypto investment frauds. Fraudsters build trust through online relationships, then direct victims to fake investment platforms that steal deposited funds. Victims are often told to deposit Bitcoin or other digital assets.

For crypto exchanges and over-the-counter desks, the move tightens the net around payment channels linked to Cambodian entities. Any firm that processed transactions through Huione Pay or its successors could face scrutiny from U.S. regulators, compliance experts said. The proposed amendment explicitly covers future successor entities, closing a common evasion tactic where sanctioned firms rebrand.

The proposal has a 30-day comment period before FinCEN can finalize it. If finalized, the restrictions would mirror the October 2025 rule that blocked Huione Group from the U.S. banking system. Treasury Secretary Scott Bessent said the administration would keep using every available tool against overseas fraud operations targeting Americans.

The sanctions were coordinated with several international partners and accompanied by separate law enforcement actions targeting scam infrastructure, Treasury said.