The Justice Department on Tuesday said it has seized infrastructure tied to what officials called one of the world’s most prolific criminal marketplaces, used to commit cyber scams and other crimes.

The seized cloud computing account hosted backend infrastructure used by subsidiaries of the Huione Group, a Cambodia-based corporate conglomerate.

At the same time, the Treasury Department announced fresh sanctions and more against Huione and affiliated companies. The administration actions Tuesday add to disruption efforts from last fall against pieces of the same network.

The Trump administration has placed an emphasis on combating transnational cybercrime and other kinds of scams and fraud.

The seized cloud computing account was used to operate Huione Guarantee, also known as Haowang Guarantee, according to Tuesday’s DOJ announcement.

“The Huione Group used this cloud computing account as part of a technological backbone that allowed billions in fraud proceeds to be transferred, moved, and concealed — much of it stolen through Southeast Asian scam centers,” said Tysen Duva, assistant attorney general of the Justice Department’s Criminal Division. “Seizures of these marketplaces is critical in the fight against fraud that affects so many Americans, and to stop avenues for criminal proceeds to be laundered.”

U.S. officials allege that Huione Guarantee operated Telegram channels with discussions about illicit goods and services, including the sale of stolen credit card and sensitive personal information, malware-enabled thefts, human trafficking schemes and the laundering of money from romance and investment scams. Huione Guarantee also allegedly offered escrow services for criminals such as money launderers for cryptocurrency.

Treasury took two steps Tuesday to build on its move in October to sever Huione Group from the U.S. financial system. One was to tack H-Pay Service onto its rule for Huione Group as a successor entity. And it slapped nine people and 26 entities linked to Prince Group with sanctions.

“Huione Group served as a critical node for laundering proceeds of cyber heists and virtual currency investment scams and was used by the Prince Group to transfer and consolidate scam-derived assets,” Treasury’s announcement states.

Also last October, the Justice Department said it seized bitcoin valued at $15 billion from the chairman of the Prince Group, Chen Zhi, and indicted him over alleged cryptocurrency crimes and other schemes. 

An alleged key figure in Chen’s criminal network has been arrested in Cambodia and extradited to China.

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An Algerian man known online as “SPOX” was extradited from Spain and charged with running a black-market cybercrime operation that prosecutors say defrauded thousands of victims and funneled roughly $900,000 through a cryptocurrency account over a three-year period.

Abdellah Belmili, 26, made his initial appearance Monday in the U.S. District Court for the Western District of New York in Buffalo. He faces a single count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison. 

He was extradited from Spain earlier this month.

Federal investigators say Belmili allegedly created and administered at least two illicit online marketplaces, market0day.com and spoxy.us, that operated similarly to commercial e-commerce platforms. The marketplaces sold financial credentials, phishing kits, compromised email server access, and other tools used to carry out fraud. All transactions on the sites were conducted in Bitcoin.

According to court documents, the FBI became aware of the marketplaces in September 2020 through a confidential source. The site’s administrator was already known to investigators as a prolific creator of phishing kits targeting major U.S. financial institutions.

In 2020, undercover FBI agents used the marketplace to buy a phishing kit designed to replicate JPMorgan Chase’s login page and capture victims’ personal information. Agents also purchased access to a compromised email server. A third item — access to a website control panel — was paid for but never delivered, prompting customer complaints on Belmili’s Telegram channel.

Shortly after those complaints surfaced, Belmili announced he was closing market0day.com and redirecting customers to a new site, spoxy.us, which he described as a “new store for bulk sms,” which typically refers to mass phishing via text message. 

The new site used the same template, color scheme, and navigation structure as its predecessor and was registered using the stolen identity of a 77-year-old Texas resident.

Investigators identified Belmili through a combination of open-source research, search warrants, and records obtained from technology and financial companies. Early versions of his phishing kit code contained his full name, “Dila Belmili,” embedded in the source alongside his Telegram handle and a link to the marketplaces. Facebook accounts linked to the alias “spox_coder” listed “Dila Belmili (spox)” as the display name, and customers had posted complaints about phishing kit purchases directly on his profile.

Records obtained from Google showed that Belmili used his personal email account to search for financial institution logos, hacking tools, and methods for generating fake identities and credit card numbers. The same account received approximately 1,400 emails containing victims’ stolen personal information from active phishing kits targeting American Express, Bank of America, Cash App, JP Morgan Chase, PayPal, and Wells Fargo.

Investigators also found that Belmili had built hidden backdoors into phishing kits he sold to other criminals, allowing him to continue harvesting victim data even after the kits changed hands.

Records from cryptocurrency exchange Binance showed approximately $900,000 deposited into an account registered to Belmili between Jan. 2020 and Jan. 2023. Of that amount, roughly $760,000 was transferred to other accounts or converted into other forms of cryptocurrency, while approximately $41,000 was withdrawn from ATMs. 

In total, investigators identified approximately 595 distinct phishing kits created by Belmili. Analysis of victim data exported to Telegram pages and email accounts linked to the operation identified roughly 5,600 victims in the United States and internationally.

“This defendant thought that he could get away with defrauding thousands of victims out of hundreds of thousands of dollars by using fake names and hiding behind a keyboard to steal bank account and credit card numbers,” said U.S. Attorney Michael DiGiacomo in a release. “This arrest makes clear that, regardless of where you operate, our law enforcement partners will find you – and when they do, you will face the full consequences of your actions.” 

You can read the court documents below. 

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Department of Homeland Security Secretary Markwayne Mullin told Congress Wednesday that the Cybersecurity and Infrastructure Security Agency would ideally have 2,800 personnel, up from approximately 2,200 now and down from 3,400 before the second Trump administration began.

President Donald Trump has pushed to dramatically reduce personnel numbers at the agency, something that has drawn criticism from both Democrats and Republicans on the Hill. Trump has proposed hundreds of millions more in cuts for fiscal 2027.

House Homeland Security Committee Chairman Andrew Garbarino, R-N.Y., asked Mullin at a hearing Wednesday about further proposed CISA budget cuts, saying he was “concerned” about personnel numbers and funding for education programs and whether the fiscal 2027 blueprint would “negatively impact those efforts.”

Mullin said DHS funding lapses have made the department rethink CISA, although the deep CISA personnel reductions predate the recent spate of government shutdowns. 

“We had to readjust the way we’re looking at CISA and better lean on public partnerships,” he said. The agency can work well with 2,800 people “If we can actually have the partnerships we need with states and be able to use the grants, the monies that [we] saved with CISA to be able to invest with local and state municipalities. … We’re not going to fail on the mission we have in front of us.”

CISA personnel figures are in a constant state of flux. The CISA staff figure of 2,200 Mullin gave is down even from December. In March, acting director Nick Andersen said CISA was looking to hire 300 people.

There’s been no proposal from the Trump administration to-date to take funds formerly allocated to CISA and shift them to state governments for cybersecurity. State officials have said CISA budget cuts have made their jobs harder, and most experts have said the Trump administration’s approach to shift cyber responsibilities to states is badly misguided.

Congress has yet to permanently reauthorize the State and Local Cybersecurity Grant Program that expired last year before it got a temporary extension and is due to expire again in September.

CISA has gone without a Senate-confirmed director for the entirety of the second Trump administration. Mullin said “we’ve got a person soon to be nominated that will be running CISA that has the ability to recruit and focus on the authorities we have.”

Mullin said CISA has “unique” authorities that haven’t “been completely utilized.” 

“We want CISA to be the leader in cybersecurity,” he said. “They should be and they will be.”

A House Appropriations subcommittee is set to consider a DHS funding bill Friday.

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Iranian hackers claimed Friday to have compromised the personal data of FBI Director Kash Patel, and the bureau confirmed that it knew of the targeting of Patel’s personal email.

The government-connected hacking group, Handala, previously claimed credit for hacking medical device maker Stryker, a boast that threat researchers considered credible.

“All personal and confidential email of Kash Patel, including emails, conversations, documents, and even classified files, is now available for public download,” Handala — also known as Handala Hack — said.

The group said it did so in response to the FBI seizing its domains and the U.S. government offering a $10 million reward for information on members of the group.

The FBI noted that Handala frequently targets government officials, and challenged elements of Handala’s claims, such as that it had brought the FBI’s systems “to its knees,” rather than Patel’s own email.

“The FBI is aware of malicious actors targeting Director Patel’s personal email information, and we have taken all necessary steps to mitigate potential risks associated with this activity,” the FBI said in response to questions from CyberScoop. “The information in question is historical in nature and involves no government information.”

The activist group Distributed Denial of Secrets published what it said was Patel’s email cache.

The FBI pointed to the State Department’s reward program seeking information on members of Handala.

“Consistent with President Trump’s Cyber Strategy for America, the FBI will continue to pursue the actors responsible, support victims, and share actionable intelligence in defense of networks,” it said. “We encourage anyone who experiences a cyber breach, or has information related to malicious cyber activity, to contact their local FBI field office.”

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Iranian government-connected groups are deploying malware via the Telegram messaging app, taking aim at dissidents and other opponents of Tehran around the world, the FBI said in an alert Friday.

The FBI said attackers linked to the Ministry of Intelligence and Security are behind the campaign, which stretches back to 2023. The bureau is escalating the alert now, though, because of the conflict between Iran and a U.S.-Israel alliance, it states.

“The observed victim profile included Iranian dissidents, journalists opposed to Iran, members of organizations with beliefs counter to Government of Iran narratives, and other individuals Iran perceives as a threat to the Iranian government, However, the malware could be used to target any individual of interest to Iran.” the alert reads. “This malware resulted in intelligence collection, data leaks, and reputational harm against the targeted parties.” 

Handala — an Iranian pro-Palestinian group that claimed credit for the hack on medical device maker Stryker this month — used information it gathered from hacking dissidents to carry out a hack-and-leak campaign in 2025, the FBI assesses. (Stryker sent a notice to the Securities and Exchange Commission Monday that provides an update on the incident.)

While U.S. officials say they haven’t seen any major increase in cyberattacks out of Iran since the conflict began, experts have noted it could be weeks before patterns emerge.

Telegram is a popular communications channel in Iran. Iranian hackers frequent Telegram to discuss planned attacks. On the other hand, the Islamic Revolutionary Guard Corps has also issued warnings to its populace that they could face prosecution if they’re members of Telegram-based opposition channels, IranWire reported last week.

The FBI said from the malware samples it examined, the scheme begins with hackers masquerading as apps like Pictory, KeePass and Telegram. The hackers configure command and control using a Telegram bot.

To gain initial access, the hackers seek to manipulate victims by posing as someone they know or as tech support for a social media platform. They then trick the victims into accepting a file transfer, which then launches the malware.

“Based on multiple observations, stage 1 of the malware appeared to be tailored to the victim’s pattern of life to increase likelihood of victim downloading the malware, which indicates the Iranian cyber actors likely performed target reconnaissance prior to engaging with the victim,” the FBI said.

The FBI alert is the latest in a series of government warnings about attackers using messaging apps to carry out their objectives.

Telegram spokesperson Remi Vaughn said in an emailed response: “Bad actors can and do use any available channel to control malware, including other messengers, email or even direct web connections. While there is nothing unique about the use of Telegram to control software, moderators routinely remove any accounts found to be involved with malware.”

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