OKX Implements Strict AML Controls on Huione Group Transactions
OKX has introduced strict anti-money laundering (AML) controls on transactions linked to Huione Group. This follows U.S. Treasury sanctions against the Cambodian conglomerate. Huione is accused of laundering billions through digital assets.
The Office of Foreign Assets Control (OFAC) and FinCEN reported that Huione processed over $98 billion in crypto inflows. This includes $4 billion in criminal proceeds from online scams, North Korean hacking, and other crimes. The group has been formally cut off from the U.S. financial system under Section 311 of the Patriot Act.
OKX founder and CEO Star Xu said Huione “has caused serious damage in the crypto space.” He confirmed the exchange will apply heightened scrutiny to deposits or withdrawals linked to Huione.
Global Coordination on Cybersecurity Enforcement
The crackdown follows a joint action by the U.S. and U.K. authorities. They also sanctioned the Prince Group Transnational Criminal Organization. This network is accused of running cyberfraud operations across Southeast Asia.
Investigators said Huione acted as a financial conduit for Prince Group’s online scam empire. It converted illicit proceeds into fiat currency through crypto transactions.
Byex Exchange, sanctioned by the U.K., was linked to Huione. Blockchain data showed over $1.7 billion in Bitcoin transactions and mining activity tied to Prince Group affiliates.
OKX Faces Increased Compliance Scrutiny
The new AML measures come amid user reports of sudden fund restrictions and repeated verification demands on OKX. Some traders reported withdrawal delays and account closures after being flagged by the exchange’s automated compliance systems.
Though unverified, these reports match Xu’s earlier statement. He acknowledged OKX’s security systems can create “false positives,” temporarily restricting accounts during reviews.
The exchange said these actions are necessary. They help prevent exposure to sanctioned entities and ensure compliance with global AML and counter-terrorism financing laws.
These developments show the challenge exchanges face. They must balance compliance with user experience. As OKX tightens risk controls under global sanctions, some legitimate users may face stricter oversight.
