OKX founder and CEO Star Xu has condemned the controversial Cambodian financial conglomerate, Huione Group, stating it has “caused serious damage in the crypto space” while emphasizing the exchange’s strict compliance measures to avoid any association with the group.

Xu made this declaration following an enforcement action led by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) on October 14, in collaboration with the UK’s Foreign, Commonwealth, and Development Office (FCDO).

Huione Group Affected by Sanctions

The joint operation targeted large-scale scam networks across Southeast Asia, identifying the Prince Group as a Transnational Criminal Organization (TCO) and designating 146 affiliates for their involvement in crypto-related fraud, unlawful mining, and extensive money laundering activities.

As part of the sanctions, the UK’s Office of Financial Sanctions Implementation (OFSI) also blacklisted Byex Exchange, following its connection to Jin Bei Group Co. Ltd and the Prince Group. Huione Group, previously flagged by FinCEN in May, is now officially classified as a “primary money laundering concern” under Section 311 of the USA PATRIOT Act, effectively excluding it from the US financial system.

The situation escalated as the US Department of Justice (DOJ) unsealed criminal charges against Chen Zhi, known as “Vincent,” who is the founder and chairman of Prince Holding Group. The DOJ also filed a civil forfeiture case for $15 billion related to approximately 127,000 BTC allegedly acquired through the group’s fraudulent crypto operations.

From Huione to Tudou

Huione Group’s subsidiary, Huione Guarantee, a Telegram-based marketplace that later became “Haowang Guarantee,” handled over $24 billion in transactions from its launch in 2021 to January 2025.

Before its shutdown in May, Huione attempted to broaden its digital ecosystem with various blockchain tools, including USDH, a stablecoin aimed at escaping regular regulatory frameworks, alongside a decentralized exchange and proprietary wallet. Post-closure, criminal operations migrated to another Telegram-based market, Tudou Guarantee, which absorbed much of Huione’s transaction volume.