Huione Pay Shuts Down After Withdrawal Surge Triggers Liquidity Crisis

Highlights:

• Users have rushed to Huione offices after a sudden freeze on withdrawals created panic and raised concerns over delayed access.
• Huione Pay has shut down after a severe run on funds, and the long repayment delays have increased pressure.
• Regulators have increased pressure on the Huione network as investigators link the group to large laundering flows.

Huione Pay has triggered widespread fear in Cambodia after it shut down services and delayed repayments, as a bank run exposed severe stress within the platform. Users discovered the freeze when they could not withdraw money on Monday. Many of the users then rushed to the company’s headquarters on Norodom Boulevard and demanded answers about their savings and the length of the shutdown.

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🚨 SANCTIONED HUIONE SHUTS DOWN AFTER MASSIVE BANK RUN!

– Cambodian lender Huione Pay freezes withdrawals & halts ops amid panic

– Blamed on surge in user withdrawals after U.S. sanctions for money laundering

– Processed $98B in illicit crypto txns, linked to scams, cyber…

— Mr Chipotle (@InsiderCOI) December 2, 2025

A notice on the building confirmed that the company faced a flood of withdrawal requests. The message said the system could not handle the sudden volume. It also announced that all branches would stay closed until January 5. Many users said that they did not receive any alerts before the freeze.

Regulators had issued warnings long before the collapse. Elliptic linked the firm to billions in illicit crypto flows. Chainalysis also tracked large volumes tied to scams and cross-border laundering rings. Upbit closed more than 200 connected accounts in November after detecting suspicious asset movements. These actions fueled doubts about the company’s stability before the shutdown.

Huione Pay Shuts Down and Introduces Delayed Repayment Options

Huione Pay introduced repayment options as pressure escalated outside its offices. The company offered two paths that required long waits. Users could shift balances into “high-yield” financial products. These products promise full repayment within 18 months and a monthly interest rate. Many customers have questioned the safety of this option.

The second plan allows withdrawals after a six-month wait, where customers will receive funds in monthly installments. The staff said these steps aim to reduce strain on the system. They urged users to follow official updates for payment schedules.

The company explained that the closures were caused by excessive liquidity pressure. It is alleged that the market environment had changed abruptly and that it had compelled users to withdraw funds immediately. The platform announced that the system was not able to balance the demand. Every branch shut down on December 1 and will be closed until early January.

The company advised customers to remain calm as the team processed repayments. Customers are insisting on a definite date of resumption and written agreements. People are anxious about the possibility that the long wait may hurt their financial health. Users are demanding clear resumption dates and written commitments. Many fear the extended wait could damage their financial stability.

Regulatory Actions Intensify Pressure on Huione Network

Regulators had increased pressure on Huione Group months before the recent shutdown. Cambodia’s central bank suspended the platform’s license for regulatory breaches. FinCEN later labeled the group a major laundering hub and cut its access to U.S. financial channels. Analysts traced large volumes from fraud networks and North Korean cyberattacks to the platform. Telegram also removed Huione channels linked to scam activity.

Elliptic estimated that the illicit flows through Huione-linked services were over $98 billion. Chainalysis reported that activity has actually grown despite sanctions. The move by Upbit to enforce in November contributed to the mounting criticism. Investigators reported that the network facilitated global laundering by means of exchanges and stablecoin channels.

🚨 Telegram dark markets expand to fill the gap left by Huione Guarantee

In May, Telegram shut down Huione Guarantee — the largest dark market to have ever existed, responsible for more than $27 billion in USDT transactions — following research from Elliptic.

Elliptic’s… pic.twitter.com/ZY2m1ju3i0

— Elliptic (@elliptic) June 23, 2025

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