Huione money laundering network core figure arrested; amount involved exceeds $89 billion. Crypto criminal enterprise hit hard again

Gate News update: Chinese police recently escorted Li Xiong, a key figure allegedly behind the Huione criminal network, from Phnom Penh, Cambodia back to China. He will face multiple charges, including fraud and money laundering. According to official information, Li Xiong previously served as chairman of the Huione Group and was an important member of the Chen Zhi criminal group. The organization has long provided funding-cleansing channels for cross-border investment scams such as “pig butchering.”

The investigation indicates that the Huione network is linked to a global large-scale illegal online trading system, with a cumulative volume of processed crypto assets exceeding $89.0 billion. It spans multiple countries and regions. Previously, U.S. law enforcement agencies carried out an ongoing crackdown on the related network and seized more than 127,000 bitcoins, which has a direct link to the Chen Zhi-operated system.

This operation took place only a few months after Chen Zhi was brought under control, showing that multiple parties, including China and the U.S., have strengthened coordination in combating cross-border crypto crime. Chinese public security authorities also disclosed that several members of the criminal group have been arrested in succession, and the case is being further investigated in depth.

Although core members have been taken down one after another, the related illicit business network has not completely disappeared. Multiple independent reports show that the Huione system has resumed operations by changing domains, shifting communications channels, and other measures, and continues to remain active on platforms such as Telegram. This decentralized, cross-border operating model gives it a relatively strong ability to withstand crackdowns.

Industry insiders say this case highlights the complex role crypto assets can play in money-laundering chains, and also reflects the ongoing challenges faced by global regulators in responding to new forms of financial crime. As enforcement continues to intensify, compliance reviews surrounding the movement of crypto funds are expected to tighten further, and market participants need to improve their risk identification and security prevention capabilities.