The U.S. Treasury’s decisive action against Funnull Technology reveals a harrowing chapter in the fight against global cyber scams, but what will their next move mean for American victims?
At a Glance
- The U.S. Treasury Department sanctioned Funnull Technology, based in the Philippines, for involvement in cryptocurrency scams.
- “Pig butchering” scams involve Southeast Asian organized crime deceiving victims worldwide.
- Victims, believing they are in trusted relationships, see fabricated returns before losing investments.
- Funnull is linked to most virtual currency scam sites reported to the FBI.
- U.S. victims have lost over $200 million, averaging $150,000 per person.
Treasury’s Sanction Against Funnull Technology
The U.S. Treasury Department has sanctioned Funnull Technology, a notorious Philippines-based company, responsible for providing essential infrastructure for orchestrating widespread cryptocurrency “pig butchering” scams. These scams, led by Southeast Asian organized crime syndicates, use trafficked individuals to con victims worldwide. Through these scams, fictitious identities and elaborate storylines lure unsuspecting victims into investing in fake virtual currency platforms.
Victims are deliberately manipulated into believing they are engaging in trusted relationships. Tricked into investing through scam sites that simulate legitimate investment platforms, they see fabricated returns. But once they stop contributing funds, communication ceases, leaving them without their entire investment. Funnull buys bulk IP addresses, later sold to cybercriminals for hosting these fraudulent websites.
The Financial Toll on U.S. Victims
U.S. victims have suffered devastating financial losses due to these scams, losing over $200 million in total. The average loss per individual is an alarming $150,000. In cooperation with the FBI, the Treasury’s Office of Foreign Assets Control moved swiftly against Funnull. The company has been linked to the majority of virtual currency investment scam websites reported to federal authorities.
“Today’s action underscores our focus on disrupting the criminal enterprises, like Funnull, that enable these cyber scams and deprive Americans of their hard-earned savings.” – Deputy Treasury Secretary Michael Faulkender.
In 2024, Funnull allegedly redirected visitors from legitimate websites to scams and gambling fronts. Funnull is operated by Chinese national Liu Lizhi, involved in assigning domain names for use in these criminal operations. U.S. sanctions also target Lizhi for complicity in these crimes.
The Ongoing Battle Against Cyber Scams
Cybersecurity firm Silent Push had rung the alarm bells about Funnull’s activities long before the treasury’s intervention. Zach Edwards, a researcher from the firm, welcomed the sanctions, but urged that more needs be done to tackle financial scams targeting Americans. Silent Push emphasized the importance of holding these global threat actors accountable and exposing the networks that facilitate such scams.
“It’s encouraging that the Treasury has taken actions against the largest pig butchering and money laundering network that exists targeting people in the U.S., but we know that more needs to be done.” – Zach Edwards.
The Treasury’s actions are a significant step towards exposing and disabling the networks that prey on unsuspecting citizens. By disrupting these fraudulent operations, they aim to prevent criminals from deceiving more Americans and laundering illicit funds. The message is clear: no stone will be left unturned in safeguarding Americans from global cyber threats.
