U.S. Sanctions Philippine Tech Firm for Role in $200M Crypto Scam Network

The U.S. Treasury Department has sanctioned Philippines-based Funnull Technology Inc. for facilitating large-scale pig butchering crypto scams. The Office of Foreign Assets Control (OFAC) revealed Thursday that Funnull provided digital infrastructure for hundreds of thousands of fraudulent websites linked to over $200 million in victim losses, primarily targeting Americans.

Pig butchering scams are long-term investment frauds often involving fake crypto platforms and emotional manipulation. Victims, many of whom were contacted via unsolicited texts, were misled into transferring significant funds, with average individual losses exceeding $150,000. These operations are typically run by organized crime groups in Southeast Asia and frequently involve trafficked laborers forced to work under brutal conditions.

Liu Lizhi, a Chinese national identified as Funnull’s administrator, was also sanctioned. OFAC stated Liu maintained detailed records of Funnull’s operations, including employee tasks such as registering fake domains used for phishing, crypto fraud, and illicit online gambling.

Funnull allegedly acquired bulk IP addresses from global cloud providers, which were then used to host scam websites that mimicked legitimate investment platforms. These spoofed sites duped users into believing their assets were secure and growing, when in reality, they were being siphoned off.

“Today’s action underscores our focus on disrupting the criminal enterprises, like Funnull, that enable these cyber scams and deprive Americans of their hard-earned savings,” said Deputy Treasury Secretary Michael Faulkender.

By designating Funnull and Liu to the Specially Designated Nationals (SDN) list, OFAC has barred all U.S. persons from engaging in any financial transactions with them. This move reflects the U.S. government's continued efforts to protect its citizens and the broader digital asset ecosystem from growing cybercrime threats linked to cryptocurrency scams.