U.S. Sanctions Philippines Firm Funnull Technology Over $200 Million Crypto Scam

The U.S. Treasury Department has taken decisive action against a Philippines-based company, Funnull Technology, and its administrator, a Chinese national named Liu Lizhi, for their role in a vast cryptocurrency scam network. The sanctions imposed freeze any U.S.-based assets held by Funnull and Liu, and prohibit American individuals and companies from engaging in business with them. The Treasury Department's allegations reveal that Funnull has been instrumental in providing the necessary computer infrastructure for hundreds of thousands of websites involved in virtual currency investment scams, commonly known as "pig butchering." These scams have led to reported losses exceeding $200 million for U.S. victims.

The scams operate by deceiving potential victims into investing in virtual currency through fake websites that mimic legitimate investment platforms. These websites falsely display significant returns on investments to entice victims into transferring their assets. The scammers often initiate contact with U.S. users through texts or social media messages, posing as potential romantic partners or friends to gain the victim's trust before persuading them to invest in fraudulent cryptocurrency schemes.

Funnull is accused of generating a large number of similar but unique domain names for fraudulent websites and providing web design templates to cybercriminals. The company allegedly purchases IP addresses and provides hosting services and other internet infrastructure to groups performing these frauds. These facilities are acquired from legitimate providers in the United States and then sold to cybercriminals, facilitating the scams.

The FBI has issued an alert listing domain names involved in the fraud and warning the public about the scam. The sanctions are expected to cut off Funnull from purchasing internet domains from U.S. companies, effectively disrupting their operations. The Treasury Department's actions are part of a broader effort to combat Asia-based scammers running large compounds dedicated to online fraud.

The sanctions against Funnull Technology and Liu Lizhi underscore the growing concern over cryptocurrency scams and the need for increased vigilance in the digital age. The U.S. government's crackdown on this network sends a strong message to other potential scammers and emphasizes the importance of protecting investors from fraudulent activities. The Treasury Department's actions are a significant step in curbing the activities of these scammers and safeguarding the interests of U.S. investors.