Crypto Laundering Network Huione is operating on a large scale and has seen an increase in trading volume even after Fincen designated it as a major money laundering concern.
Despite reports of the closure and removal of its website and telegram channel, the Chinese crypto-laundry platform Huione continues to operate on a large scale. Huione’s trading volume has risen even after the May 1 announcement by Fincen was designated as a major money laundering concern under the US Patriot Act, according to data from ChaianAlysis.
Source: Chain Analysis
This is the second time Fincen uses sections 311 and 9714 against crypto-related illegal finance after targeting the Bitzlat exchange. Section 311 allows regulators to quickly quarantine bad actors without court approval. The rules are not final yet, but US banks usually cut ties immediately after their announcement to avoid regulatory risks. This may have resulted in Huione cutting its access to the US dollar from that day, but transactional data shows little or no disruption in its operation.
As reported by Chain Melting, Huione resurfaced under the new domain, Huione.me, maintaining the presence of old branding and aggressive social media, including strong Telegram channels for user engagement. The platform continues to be listed for trading with linked tokens XOC and Stablecoin USDH.
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After being assumed to shut down Huione, none of the other guarantee services matched the volume of that scale or transaction. Several platforms such as Tudou Danbao have seen temporary activity, but these increases are only minor compared to Huione’s continued operation. This suggests that users are primarily staying within Huione’s laundry network, rather than migrating elsewhere.
Source: Chain Analysis
According to Chainalysis, Huione’s persistence highlights the limitations of fragmented enforcement. Destroying such networks requires coordinated cross-border action and real-time intelligence sharing. Blockchain analysis is key to closing gaps that traditional methods cannot reach.
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