The U.S. Treasury, the agency responsible for managing U.S. financial policy and issuing federal debt, has sanctioned a Philippine-based technology firm accused of providing infrastructure for cryptocurrency scams known as “pig butchering,” which have cost U.S. victims at least $200 million.
Sanctions on Philippine Firm
Funnull Technology Inc., based in the Philippines, was sanctioned by the U.S. Treasury’s Office of Foreign Assets Control (OFAC). The regulator also sanctioned Liu Lizhi, a Chinese citizen and alleged administrator of the company.
Allegedly, Funnull purchased IP addresses in bulk and resold them to cybercriminals.
According to OFAC, there are two crypto wallet addresses, which are based on Ethereum and TRON networks, linked to Funnull that were added to the Treasury’s Specially Designated Nationals list. These wallet addresses allegedly received payments for web services used in the scams.
The U.S. Treasury accused Funnull of supporting fraudulent websites tied to organized cybercrime. These sites were used to deceive investors through fake platforms mimicking legitimate financial services.
Connections of Funnull
The regulator emphasized that Funnull hosted sites that included fake trading apps, investment scams, and gambling services. The scams are associated with the “Triad Nexus,” a network of more than 200,000 domains.
A blockchain analysis also showed that Funnull’s crypto wallets had exposure to Huione Pay, identified by U.S. authorities as a major money laundering platform.
“Funnull Technology Inc. enabled cybercriminals by purchasing IP addresses in bulk from major cloud service providers and selling them to operators of fraudulent investment platforms.”
Chainalysis Team
Huione Pay is linked to a Philippine case involving the killing of billionaire Anson Que after his family paid ransom through cryptocurrency.
As of this writing, the U.S. government, alongside cybersecurity researchers, pledged to continue tracking these activities and issue advisories.
Pig Butchering Scam Tactics
Pig butchering scams, which originated in China, rely on manipulating individuals into making fake crypto investments. Scammers are known for using fake investment apps and websites to appear credible.
These scams now often use generative AI tools to improve their outreach, and victims are typically lured through social media or dating apps.
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This is a developing story: BREAKING: US Sanctions Philippine Tech Firm for Role in Crypto Scam Network
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