US Sanctions Philippines’ Funnull Technology Over $200M Crypto Scam

The US Department of the Treasury has taken action against Funnull Technology Inc. for enabling massive pig butchering crypto scams. This move targets the backbone of fraudulent virtual currency investment platforms, aiming to protect Americans from billions in losses.

The US government has taken a major step to fight online financial scams, particularly those involving cryptocurrency. On May 29, 2025, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced strict financial penalties (sanctions) against Funnull Technology Inc.

This Philippines-based company and its administrator, Liu Lizhi, are accused of providing the essential tools and support for a huge number of fake online investment schemes. These widespread frauds, aka pig butchering scams, have already caused Americans to lose billions of dollars, and the government’s action aims to stop these criminals by cutting off their financial lifelines.

****Understanding Pig Butchering Scams****

Pig butchering refers to a sophisticated type of scam where criminals build trust with victims, often through social media or dating apps, over an extended period. Once a relationship is established, the scammers convince victims to invest in fake virtual currency platforms, promising high returns. Victims are led to believe their investments are growing, only to find they cannot withdraw funds, and the scammers disappear, taking all their invested money.

Reportedly, in 2024, US citizens lost billions of dollars to these scams, with Funnull-linked operations being responsible for over $200 million in reported losses. The average individual loss for victims linked to Funnull’s network was over $150,000.

Source: Chainalysis

****Funnull Technology’s Role****

Reportedly, Funnull Technology Inc. was a key player in fraudulent activities by buying large numbers of IP addresses from global cloud service providers and selling them to cybercriminals. This allowed them to create fake websites that resembled legitimate investment platforms. Funnull also provided web design templates and used domain generation algorithms to create similar website names.

Source: Chainalysis

In 2024, Funnull acquired web development code and used it to redirect visitors to scam and online gambling sites, some connected to Chinese criminal money laundering. Liu Lizhi, a Chinese national, managed Funnull’s daily operations, overseeing tasks like assigning domain names for fraud, phishing, and illegal gambling sites.

****Consequences of the Sanctions****

OFAC’s sanctions included two cryptocurrency addresses, Ethereum and TRON, likely used for Funnull’s services. These addresses are linked to other illicit financial activities, including Huione Pay, a company identified by FinCEN (Financial Crimes Enforcement Network) as a primary money laundering concern. The FBI has issued a cybersecurity advisory (PDF) to help the private sector identify and remove websites linked to Funnull.

As a result of these sanctions, all property and assets of Funnull and Liu Lizhi within the United States or under US control are blocked. Additionally, US individuals and companies are prohibited from doing business with them and any entity owned 50% or more by Funnull or Liu. The public is encouraged to report any online scams or illegal activities to the FBI’s Internet Crime Complaint Center (IC3).