OKX CEO Star Xu slams Huione Group after $15 billion DOJ crackdown

OFAC and FinCEN have exposed the Huione Group’s money laundering trail.

OKX founder and CEO Star Xu has condemned controversial Cambodian financial conglomerate Huione Group, saying the entity has “caused serious damage in the crypto space,” while emphasizing that the exchange maintains strict compliance controls to avoid any association with it.

Xu’s statement came shortly after an enforcement action led by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) on October 14, in coordination with the U.K.’s Foreign, Commonwealth, and Development Office (FCDO).

Huione group hit by sanctions

The joint operation focused large-scale scam networks in Southeast Asia, and has designated the Prince Group Transnational Criminal Organization (TCO) and 146 affiliated organizations for their role in crypto fraud, illegal mining and global money laundering activities.

As part of the sanctions, the UK’s Office of Financial Sanctions Implementation (OFSI) also blacklisted Byex Exchange after revealing its ties to Jin Bei Group Co. Ltd and the Prince Group had discovered. The Huione Group, which was previously highlighted by FinCEN in May, has now been formally classified as a “major money laundering concern” under Section 311 of the US PATRIOT Act. This designation effectively cuts the country off from the American financial system.

The crackdown intensified when the US Department of Justice (DOJ) unsealed criminal charges against Chen Zhi, also known as “Vincent,” who happens to be the founder and chairman of Prince Holding Group.

In addition to the indictment, the DOJ has filed a case for as much as $15 billion in civil forfeiture, tied to approximately 127,000 BTC allegedly generated through the group’s vast network of fraudulent crypto operations.

From Huione to Tudou

Huione Group’s subsidiary Huione Guarantee, the Telegram-based marketplace later renamed ‘Haowang Guarantee’, facilitated more than $24 billion in transactions since its founding in 2021 until January 2025.

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Before closing in May, Huione expanded its digital ecosystem by launching multiple blockchain-based tools, including USDH, a US dollar-backed stablecoin designed to circumvent traditional regulatory controls. It also developed a decentralized exchange, its own wallet and the ChatMe communication platform modeled on Telegram. The group created a closed ecosystem that enabled internal transfers while minimizing exposure to regulatory oversight.

Since its closure, criminal networks have moved to another Telegram-based market, Tudou Guarantee, which appeared to have absorbed a large portion of its predecessor’s transactions.