Treasury Sanctions Philippines Tech Firm Over $200M Pig Butchering Scams

The U.S. Department of the Treasury has taken action against a Philippines-based tech company, Funnull Technology Inc., for its role in facilitating pig butchering scams. The Office of Foreign Asset Control (OFAC) announced that Funnull Technology provided the necessary computer infrastructure for hundreds of thousands of websites involved in these deceptive schemes. The company's administrator, Liu Lizhi, a Chinese national, was also sanctioned.

According to the press release, Funnull Technology has been directly involved in causing over $200 million in losses for victims in the U.S. The average loss per individual victim exceeded $150,000. Deputy Secretary of the Treasury Michael Faulkender emphasized the Treasury's commitment to disrupting criminal enterprises that enable these scams, stating, "The United States is strongly committed to ensuring the continued growth of a legitimate, safe, and secure digital asset ecosystem, including the use of virtual currencies and similar technologies."

Pig butchering schemes are a type of crypto investment scam where victims are groomed over an extended period, often through romantic relationships initiated by unsolicited texts. These scams are typically organized by criminal organizations in Southeast Asia, who exploit victims of labor trafficking to carry out the fraud. The scams involve convincing victims to invest large sums of money into fraudulent crypto investments, mimicking trusted websites to deceive victims into believing their investments are legitimate.

OFAC's action against Funnull Technology and Liu Lizhi includes placing them on the Specially Designated Nationals list (SDN), which bars all U.S. persons from transacting with them in any way. This move is part of a broader effort to combat cybercrime and protect individuals from falling victim to these sophisticated scams. The Treasury's action underscores the importance of maintaining a secure digital asset ecosystem and ensuring that criminal enterprises are held accountable for their actions.