Crypto Laundering Network Huione Thrives Despite U.S. Sanctions and Shutdown Claims

The crypto laundering network Huione remains active and operational despite facing sanctions from U.S. regulators and reports of a shutdown. According to Chainalysis, transaction volumes on the platform have not only held steady but increased following a May 1 designation by the U.S. Treasury’s FinCEN, which labeled Huione a primary money laundering concern under the USA PATRIOT Act.

FinCEN’s action marked just the second time it has invoked Sections 311 and 9714 of the Act against a crypto-related entity—the first being the case of Bitzlato. These provisions allow U.S. regulators to quickly sever financial ties to suspicious actors without the need for court orders. In practice, this typically prompts U.S. banks to cut off access to dollar-based transactions immediately. However, Huione appears largely unaffected.

Despite the platform’s main website and some of its Telegram channels being removed, Huione quickly resurfaced under a new domain, Huione.me, preserving its branding and continuing to engage with users via alternative Telegram channels. Trading activity also persists, with the site still listing USDH (a stablecoin) and XOC (a linked token) for transactions.

Chainalysis noted that while competing platforms such as Tudou Danbao saw brief spikes in user activity following Huione’s reported takedown, these alternatives failed to match Huione’s scale or consistency. The user base seems to have remained loyal to the original platform, pointing to its deeply entrenched position within illicit crypto finance networks.

The case underscores the limitations of unilateral regulatory action. Without coordinated international enforcement and real-time intelligence sharing, entities like Huione are able to adapt and re-emerge quickly. Experts stress that blockchain analytics tools are crucial in tracking these movements and plugging the gaps traditional financial oversight can't reach.