U.S. Treasury Sanctions Crypto Scam Network Funnull, Freezes $200 Million

The U.S. Treasury Department has taken decisive action against a crypto scam network, Funnull, which has been operating out of the Philippines and has links to China. The network is accused of defrauding victims out of $200 million through a series of complex schemes. The sanctions imposed by the Treasury Department freeze any U.S.-based assets belonging to Funnull and its key figures, including Liu, and prohibit American individuals and companies from conducting business with them.

The scams orchestrated by Funnull involve deceiving potential victims into investing virtual currency on fake websites that mimic legitimate investment platforms. These websites are designed to trick users into believing they are investing in genuine opportunities, while in reality, their funds are being stolen by the fraudsters. The U.S. Treasury's Office of Foreign Assets Control (OFAC) has taken action to disrupt these activities, aiming to protect potential victims and recover stolen funds.

In addition to targeting Funnull, the U.S. has also sanctioned a web hosting provider in the Philippines that has allegedly been selling thousands of internet domains to fraudsters. This provider has played a crucial role in facilitating the scams by providing the necessary infrastructure for the fake websites. By cutting off this supply chain, the U.S. aims to make it more difficult for scammers to operate and reach potential victims.

The FBI is actively seeking victims of these scams and encouraging anyone who believes they may have been targeted to come forward. The agency is working closely with international partners to dismantle the network and bring those responsible to justice. The sanctions and ongoing investigations serve as a stark reminder of the growing threat posed by crypto scams and the importance of vigilance in the digital age.

The U.S. Treasury's actions highlight the increasing sophistication of cybercrime networks and the need for coordinated efforts to combat them. By targeting both the scammers and the infrastructure that supports their activities, the U.S. is sending a clear message that such criminal behavior will not be tolerated. The sanctions also underscore the importance of international cooperation in addressing transnational crimes, as the network spans multiple jurisdictions and involves actors from different regions.