U.S. Imposes Sanctions on Philippines-Based Funnull Technology Linked to Cryptocurrency Scams
May 29, 2025
The United States Department of the Treasury has announced sanctions against Funnull Technology Inc., a company based in the Philippines, due to its involvement in facilitating numerous cryptocurrency investment scams, commonly referred to as "pig butchering." This action underscores the U.S. government’s ongoing efforts to combat financial crimes and their associated networks.
Allegations Against Funnull Technology
In a statement released on Thursday, Treasury officials outlined serious allegations against Funnull Technology. The company is accused of purchasing internet protocol (IP) addresses in bulk from various service providers and subsequently reselling these addresses to cybercriminals. This action has enabled a host of fraudulent online activities, particularly in the realm of cryptocurrency scams.
Additionally, Liu Lizhi, a 40-year-old Chinese citizen allegedly involved in the operation of Funnull, has also been placed under sanctions. The U.S. Treasury links Liu to multiple addresses in Shanghai and Ganzhou; however, attempts by Reuters to contact him for clarification were unsuccessful. Furthermore, press inquiries directed towards Funnull Technology did not yield a response, and an effort to find the company listed in the Philippines’ corporate registry proved unfruitful as well.
The Rise of Cryptocurrency Scams
Cryptocurrency investment scams, especially the scheme known as "pig butchering," have surged in recent years. These scams typically entice individuals to invest in fake cryptocurrency opportunities, often through misleading websites, resulting in substantial financial losses for victims. The global reach of these scams has expanded rapidly, with organized crime networks leveraging sophisticated tactics to defraud unsuspecting investors.
Earlier this year, researchers from the cybersecurity firm Silent Push identified Funnull as a key player in a network of websites used for scamming, linking it to thousands of other sites suspected of engaging in money laundering or gambling-related fraud. The term "pig butchering" is derived from a metaphor for the way these scams systematically exploit victims, luring them in before draining their financial resources.
Trends and Implications
The rise of advanced technologies, including generative algorithms, has further amplified the effectiveness of these scams. As noted by the blockchain analytics firm Chainalysis, revenues from cryptocurrency scams have reached unprecedented levels as scammers enhance their methods for reaching and deceiving potential victims.
The U.S. sanctions against Funnull Technology reflect a broader move to address financial crimes that not only harm individual investors but also contribute to organized crime operations, including human trafficking. As international regulations tighten to combat these networks, agencies are expected to face ongoing challenges in tracking and dismantling such complex schemes.
As developments continue, stakeholders and consumers alike are urged to remain vigilant against fraudulent activities and to report any suspicious behaviors to appropriate authorities.
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