TLDR;
- U.S. Treasury sanctions Philippines-based tech firm Funnull for supporting crypto scams totaling over $200 million in U.S. losses.
- Funnull enabled thousands of “pig butchering” scam sites through infrastructure, templates, and IP services.
- Chinese national Liu Lizhi, administrator of Funnull, was also sanctioned for his direct role.
- The FBI and Treasury aim to crack down on cross-border cybercrime networks targeting Americans.
The U.S. Department of the Treasury has sanctioned Funnull Technology Inc., a tech firm based in the Philippines, for its central role in enabling a massive network of cryptocurrency scams known as “pig butchering.” The scam operation, authorities say, has led to more than $200 million in losses for American victims.
Notably, the Treasury’s Office of Foreign Assets Control (OFAC) announced the sanctions on May 29, highlighting Funnull as a “major cyber scam facilitator” behind the infrastructure of fraudulent websites used to lure unsuspecting users into fake crypto investments. In coordination with the FBI, the Treasury’s action also targets Liu Lizhi, a Chinese national and the firm’s administrator, for orchestrating and managing these operations.
How Funnull Enabled Massive Crypto Fraud
Funnull’s operations go beyond simply providing hosting services. According to U.S. officials, the company acquired IP addresses in bulk from global cloud providers, created domain names via algorithms, and offered web design templates specifically tailored to scam operations. These resources helped cybercriminals masquerade as legitimate investment platforms, making it nearly impossible for victims to detect fraud.
Moreover, Funnull is accused of having maliciously altered open-source code repositories—including the Polyfill.io library widely used by web developers—to redirect visitors from legitimate websites to scam portals and online gambling sites. Some of these redirected platforms are reportedly tied to Chinese criminal money laundering networks.
“These aren’t just tech tools, they’re enablers of exploitation,” said Deputy Treasury Secretary Michael Faulkender. “This action underscores our focus on disrupting criminal enterprises like Funnull that are designed to defraud Americans out of their life savings.”
Pig Butchering’s Human Impact
Pig butchering scams, so named for the methodical way victims are “fattened up” through fake trust before being drained financially, typically begin with cybercriminals posing as potential romantic interests or business partners. They build a relationship over time and eventually convince their targets to invest in fabricated cryptocurrency platforms, where “profits” appear real until the scammers vanish with the funds.
According to Treasury data, average losses exceed $150,000 per victim, though experts believe actual totals are much higher, as many victims never report the crime due to embarrassment or lack of awareness.
Cybersecurity researcher Zach Edwards of Silent Push, who had previously investigated Funnull’s activities, said the latest sanctions are a step in the right direction:
“This is the tip of the iceberg. We’ve seen Funnull directly support the biggest scam networks we know of. It’s encouraging to see them finally named and shamed.”
The Path Ahead
Under Executive Order 13694, amended by EO 14144, the sanctions freeze all U.S.-linked assets of Funnull and Liu Lizhi and prohibit any U.S. individuals or companies from doing business with them. Financial institutions found to interact with the blocked entities may also face penalties.
The FBI has issued a cybersecurity advisory to help the private sector identify websites and IP addresses tied to Funnull’s network. The public is urged to report suspicious sites or crypto schemes to the FBI’s Internet Crime Complaint Center (IC3).
The crackdown follows a rising tide of global concern over crypto-related fraud, particularly schemes tied to labor trafficking rings in Southeast Asia, where individuals are forced to work in scam call centers under threat of violence.
