U.S. Treasury Sanctions Funnull Technology Inc.
On Thursday, the U.S. Treasury Department imposed sanctions on Funnull Technology Inc., a company situated in the Philippines, which authorities believe is pivotal in supporting a large-scale cyber fraud operation that facilitates cryptocurrency scams. Funnull has been implicated in providing crucial technical services for numerous websites that engage in what is popularly known as “pig butchering” scams — elaborate schemes where con artists, masquerading as romantic interests or financial advisors, lure victims into fraudulent cryptocurrency investments.
Victim Impact and Financial Losses
Victims across the United States have reported staggering losses exceeding $200 million tied to sites associated with Funnull, with many individuals averaging losses of more than $150,000 each. Additionally, the Treasury sanctioned the firm’s administrator, Liu Lizhi, a national of China.
Collaboration with Law Enforcement
This action was executed by the Treasury’s Office of Foreign Assets Control (OFAC) under Executive Orders 13694 and 14144, in collaboration with the Federal Bureau of Investigation (FBI). The FBI plans to issue a cybersecurity advisory aimed at assisting private sector entities in identifying and dismantling platforms connected to Funnull’s operations.
Details of Fraudulent Activities
Deputy Treasury Secretary Michael Faulkender emphasized the importance of these measures, stating that they demonstrate the U.S. government’s dedication to disrupting the frameworks that enable cybercrime targeting American citizens. Authorities revealed that Funnull had engaged in bulk purchasing of IP addresses from cloud service providers, subsequently reselling them to fraudsters who operate phony investment and phishing sites. Furthermore, the company utilized domain generation algorithms to create a large number of domain names and offered design templates, thereby aiding cybercriminals in mimicking legitimate financial services.
Ongoing Investigations
In 2024, the company was accused of manipulating a code repository utilized by developers, allowing them to secretly redirect web traffic from authentic websites to scam and gambling platforms, some of which were alleged to be associated with Chinese money laundering activities. Liu Lizhi was reportedly in charge of Funnull’s operations, overseeing staff responsible for domain assignments and maintaining the infrastructure that supports fraud, phishing, and illegal gambling activities.
Government Warnings and Future Actions
This recent move by the Treasury follows a warning from its Financial Crimes Enforcement Network in September 2023 regarding pig butchering scams and their connections to Southeast Asian criminal organizations exploiting victims of labor trafficking for fraud purposes.
