Overview
A Cambodian currency exchange and payments company, Huione Pay, has been reported to receive over $150,000 worth of cryptocurrency from a wallet associated with North Korean hackers known as Lazarus. The funds were transferred to Huione Pay between June of the previous year and February of the current year.
Background
According to Reuters, the cryptocurrency received by Huione Pay was stolen by hackers from Lazarus in June and July of the previous year from three different cryptocurrency companies. Despite the illicit origins of the funds, Huione Pay claimed that it was unaware that the funds were indirectly linked to the hacks.
Response and Regulatory Actions
In response to the incident, the National Bank of Cambodia stated that Huione Pay is not authorized to engage in crypto-related activities and warned of potential corrective measures against the platform. This highlights the regulatory challenges surrounding the use of cryptocurrencies in Cambodia and the importance of compliance with existing financial regulations.
Connection to Cambodia’s Ruling Family
Huione Pay is part of a larger group that has ties to Cambodia’s ruling family. The company’s association with prominent figures raises questions about the oversight and accountability of financial institutions linked to influential individuals in the country.
Role of Huione Guarantee
Another entity within the same group as Huione Pay is Huione Guarantee, a marketplace identified by crypto-tracing firm Elliptic as hosting merchants involved in fraudulent activities, such as pig-butchering schemes. This raises concerns about the potential complicity of related entities in facilitating illicit financial transactions.
Conclusion
The case of Huione Pay receiving funds from North Korean hackers underscores the importance of robust regulatory oversight in the cryptocurrency space, particularly in jurisdictions where regulations may be less stringent. It also highlights the need for increased transparency and due diligence in financial transactions involving digital assets to prevent potential misuse and illicit activities.