Earlier today, December 2, Huione Pay abruptly halted operations and froze withdrawals, causing panic among users in Phnom Penh and adding pressure to the global crypto market.
Key Takeaways:
- Huione Pay suspended operations on December 1, 2025, following a surge in withdrawal requests, offering a deferred repayment plan to users.
- The shutdown comes amid ongoing regulatory scrutiny; Huione Pay lost its Cambodian banking license last year over alleged money-laundering activities.
- The broader crypto market saw further weakness as major coins declined, with macroeconomic stress adding to risk-off sentiment.
Huione Pay, the payment and crypto-fiat service of Cambodia-based Huione Group, announced a temporary halt of operations and froze all user withdrawals. The company cited a sudden surge in requests that strained its liquidity. A researcher on X (formerly Twitter) with the handle Jacob in Cambodia, has reported the incident, highlighting Huione’s collapse as being “visible on the ground” due to frozen withdrawals confirmed on the delayed payout plan posted in front of the Phnom Penh branch. The post also noted queues being formed outside the location.
To manage the situation, Huione offered users a “delayed redemption plan.” Depositors could either convert their balances into high-yield products with an 18-month lockup or withdraw funds in phased installments over six months. Many users view this as effectively freezing access to their crypto holdings.
Scenes From Phnom Penh as Withdrawals Freeze
Reports from Phnom Penh show long queues of anxious users outside Huione Pay offices, seeking clarity on their funds. Many described frustration and fear, worrying that balances may remain inaccessible for months.
Social media posts and local news coverage highlighted the chaos, reflecting deep concern among Huione Pay’s customer base. The freeze has sparked debates about the risks of centralized crypto payment platforms in emerging markets and has prompted calls for clearer oversight.
Regulatory Pressures That Led to the Collapse
Huione Pay has been under scrutiny for months. In March 2025, Cambodia’s financial regulator revoked the company’s banking license over alleged noncompliance and links to money-laundering.
The company also operates Huione Guarantee, a marketplace flagged by blockchain watchers for illicit transactions. Over the past two years, authorities and analytics firms have linked the group to cyber scams, illicit OTC trading, and stablecoin misappropriation, including frozen USDT worth over $29 million.
Real-Time Crypto Market Reaction
The Huione Pay issue coincides with the broader crypto market’s current volatility. As of this writing (11:00AM UTC), Bitcoin (BTC) is trading at approximately $87,336.71, showing modest gains of 0.8% over the past 24 hours while touching intraday lows near $83,989.43 and intraday highs around its current price, which suggests a recovery phase after recent lows. Meanwhile, Ethereum stays negative as it trades around $2,826.34, reflecting price decline around 0.7% in the last 24 hours.
Technical indicators reflect shaky conditions, with the average relative strength index (RSI) across major cryptocurrencies around 36, signaling an oversold market. Analysts warn that combined with macroeconomic stress, which includes increasing interest rates and tightening
Outlook
For the users and clients of Huione Pay, the next few weeks will reveal whether the deferred redemption plan ensures fund recovery or leads to permanent losses. Meanwhile, the broader crypto market leans more to being in its volatile state. Analysts suggests to watch interest rates, macroeconomic trends, and regulatory developments closely to assess risk exposure.
This episode serves as a cautionary tale for crypto investors in emerging markets, reminding them of the importance of platform due diligence and the risks tied to unregulated crypto services. The Huione Pay halt could also trigger tighter scrutiny on similar platforms, potentially reshaping user behavior and market dynamics in the months ahead.
Summary
Huione Pay halted operations and froze withdrawals in Phnom Penh after a surge in withdrawal requests, offering delayed redemption options amid prior regulatory actions, sparking user panic and adding to crypto market unease.
