Woofun AI reports that the U.S. Department of Justice has seized cloud computing accounts associated with Huibang Group, also known as Huione Group, in a significant enforcement action targeting cryptocurrency money laundering. Assistant Attorney General A. Tysen Duva disclosed that these accounts provided critical technical support, enabling the transfer and concealment of scam proceeds through Southeast Asian operations. This seizure is a key component of 'Operation Choke Point,' an initiative under which the U.S. Financial Crimes Enforcement Network previously flagged Huibang Group as a primary money laundering concern.

The Department of Justice alleges that Huibang's subsidiaries facilitated the movement of funds derived from investment scams, cyber theft, and other illegal blockchain activities into the legitimate banking system. A substantial portion of this illicit activity is reportedly linked to North Korean actors.

Additionally, Huibang's 'Huione Guarantee' platform was found to have advertised stolen credit cards, identity information, malware profits, and human trafficking services on Telegram channels. Blockchain analytics firm Elliptic noted that Huibang launched the stablecoin USDH under financial pressure last year, alongside developing a proprietary product line featuring a decentralized exchange, wallets, and 'Huione Chain' (Xone).