Police Conduct Search and Seizure at Upbit Over Cambodian 'Huione' Case

The police have reportedly launched a compulsory investigation into suspicions that a domestic virtual asset exchange was exploited for money laundering by a Cambodian criminal organization.

Yonhap News Agency

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On November 1, the Security Investigation Division of the Seoul Metropolitan Police Agency conducted a search and seizure at Upbit on October 15 to secure records of coin deposits and withdrawals involving "Huione Guarantee," which is suspected of serving as a money laundering channel for the Cambodian criminal organization.

Huione Guarantee is a virtual asset service platform operated by the Huione Group. The Huione Group has previously been designated as a transnational criminal organization and sanctioned in the United States and the United Kingdom on charges of laundering coins acquired through fraud or theft.

On March 7, Upbit reported 205 users to the police after its internal monitoring detected money laundering risks. The virtual assets transferred between Upbit and Huione Guarantee by these users amounted to approximately 200 million won, accounting for about 3% of the total transaction volume between domestic exchanges and Huione Guarantee. The majority of the remaining transactions reportedly took place through Bithumb.

Other domestic exchanges also blocked coin withdrawals for users with transaction records involving Huione Guarantee in May, and as a result, the scope of the police investigation is expected to expand.

The police believe that the movement of coins between domestic exchanges and Huione Guarantee may have been an attempt to conceal criminal proceeds.

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