Huione Pay, a Phnom Penh-based payments company linked to Cambodia’s ruling family, has found itself at the center of controversy after receiving over $150,000 worth of cryptocurrency from a wallet associated with North Korean hackers Lazarus. The funds were received between June last year and February this year, according to blockchain data cited by Reuters. The crypto was stolen by hackers from Lazarus from three separate cryptocurrency companies in June and July last year.
In a statement, Huione Pay claimed that it was unaware it had “received funds indirectly” from the hacks. The National Bank of Cambodia confirmed that the company is not authorized to deal or trade in cryptocurrency and stated that corrective measures would be imposed against the platform. Huione Pay is also linked to Huione Guarantee, a marketplace that hosts merchants, including scam artists involved in pig-butchering schemes, according to crypto-tracing firm Elliptic.
Despite these revelations, Huione Pay did not respond to requests for comment from CoinDesk. The incident highlights the growing concerns around the use of cryptocurrency for illicit activities and the need for stricter regulations and oversight in the industry. As AI crypto scams are on the rise, it is crucial for companies and individuals to exercise caution and due diligence when dealing with cryptocurrency transactions to avoid falling victim to such fraudulent activities.
The involvement of Huione Pay in receiving funds from hackers associated with North Korea raises serious questions about the company’s compliance with regulations and its ties to illicit actors. The fact that the National Bank of Cambodia has stated that the company is not authorized to deal in cryptocurrency further underscores the need for enhanced regulatory oversight in the industry. The potential involvement of Huione Pay in facilitating transactions for scam artists also raises red flags about the company’s operations and practices.
The lack of response from Huione Pay to requests for comment on the matter is concerning and suggests a lack of transparency and accountability on the part of the company. As the use of cryptocurrency continues to grow, it is essential for businesses operating in the space to adhere to strict compliance protocols and ensure that they are not inadvertently involved in illicit activities. The incident involving Huione Pay serves as a reminder of the risks associated with cryptocurrency transactions and the importance of conducting thorough due diligence before engaging in such activities.
Moving forward, it will be important for regulators and law enforcement agencies to closely monitor companies like Huione Pay to prevent them from being used as conduits for illicit financial activities. By holding companies accountable for their actions and imposing strict penalties for non-compliance, regulators can help protect consumers and maintain the integrity of the cryptocurrency market. As the industry continues to evolve, it is crucial for all stakeholders to work together to address emerging threats and ensure a safe and secure environment for conducting cryptocurrency transactions.
In conclusion, the incident involving Huione Pay and the receipt of funds from North Korean hackers Lazarus highlights the need for greater scrutiny and oversight in the cryptocurrency industry. Companies operating in this space must adhere to regulations and compliance protocols to prevent exploitation by illicit actors. By enhancing transparency and accountability, regulators can help safeguard consumers and maintain the integrity of the cryptocurrency market. As the industry continues to grow, it is essential for all stakeholders to work together to combat fraud and protect against emerging threats in the cryptocurrency space.
