The U.S. Treasury has struck a major blow against cryptocurrency fraud by sanctioning Funnull Technology, a Philippines-based company accused of enabling massive “pig butchering” scams that have cost Americans over $200 million.
At a Glance
- Treasury sanctions Funnull Technology for providing infrastructure supporting cryptocurrency “pig butchering” scams
- Victims have lost over $200 million, with average losses of $150,000 per person
- Scammers create fake relationships and investment platforms to deceive victims
- Funnull is linked to the majority of virtual currency investment scam websites reported to the FBI
- Chinese national Liu Lizhi, who operates Funnull, was also sanctioned
Anatomy of a Massive Fraud Operation
The U.S. Treasury Department’s Office of Foreign Assets Control has taken decisive action against Funnull Technology, a Philippines-based company allegedly providing the technical backbone for widespread cryptocurrency scams. The company, operated by Chinese national Liu Lizhi, has been identified as a key enabler in sophisticated “pig butchering” schemes that have devastated countless American investors. These complex scams originate primarily from Southeast Asian organized crime syndicates that often use labor trafficking victims to target people worldwide.
The term “pig butchering” refers to the criminal practice of “fattening up” victims before slaughter – in this case, building trust with potential marks before stealing their investments. Funnull’s specific role involved purchasing IP addresses in bulk and selling them to cybercriminals who then established fraudulent cryptocurrency investment platforms. The company also provided web design templates that allowed scammers to quickly create and modify these deceptive sites.
How the Scams Target Americans
According to Treasury officials, these sophisticated operations begin with scammers creating fictional personas and elaborate storylines to deceive victims. They often initiate contact through social media, dating apps, or even wrong-number text messages, slowly building what appears to be a trusted relationship. Once trust is established, victims are convinced to invest in seemingly legitimate cryptocurrency platforms that show fabricated investment returns.
The scammers encourage increasing investments, showing fake growth in the victim’s portfolio. However, when victims attempt to withdraw funds or stop investing, the scammers disappear, taking the entire investment with them. FBI reports indicate that U.S. victims have lost over $200 million through these schemes, with an average loss of $150,000 per person – representing substantial portions of retirement savings and personal wealth for many Americans.
Beyond Cryptocurrency Scams
The Treasury’s investigation revealed that in 2024, Funnull expanded its criminal enterprise by altering code to redirect visitors from legitimate websites to scam and gambling sites. This tactic, known as the Polyfill supply chain attack, further demonstrates the sophisticated nature of these operations. Funnull’s connection to the majority of virtual currency investment scam websites reported to the FBI underscores the scale of this criminal network.
“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.”, said Deputy Treasury Secretary Michael Faulkender.
Cybersecurity firm Silent Push had previously identified Funnull’s activities before the Treasury sanctions were announced. Zach Edwards, a researcher from Silent Push, expressed satisfaction with the government’s action while emphasizing that more needs to be done to protect Americans from international financial scams. The sanctions represent a significant step toward holding global threat actors accountable for targeting U.S. citizens.
Protecting American Investors
The Treasury’s sanctions against Funnull were implemented in cooperation with the FBI, highlighting the growing coordination between financial regulators and law enforcement in combating cryptocurrency fraud. As digital assets continue to gain mainstream adoption, government agencies are increasingly focusing on companies that provide infrastructure for fraudulent activities rather than just targeting individual scammers.
“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.”, said Zach Edwards.
These sanctions serve as a warning to companies providing technical support for cryptocurrency scams and a reminder to investors about the persistent risks in digital asset markets. Financial experts advise extreme caution when approached with unsolicited investment opportunities, particularly those involving cryptocurrency platforms promising unusually high returns with minimal risk.
