In a significant crackdown on the digital infrastructure enabling global cryptocurrency fraud, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Funnull Technology Inc., a tech company based in the Philippines, along with its administrator, Liu Lizhi. This move aims to disrupt the operations of cybercriminals who exploited the firm’s technology to run sophisticated crypto scams that have collectively defrauded American victims out of over $200 million.
The Treasury Department alleges that Funnull Technology provided the backbone for multiple “pig butchering” scams—fraud schemes named after the cruel practice of fattening a pig before slaughter. These scams typically involve building trust with victims via social media or dating platforms before convincing them to transfer cryptocurrency or give access to their wallets. Funnull allegedly supplied the technical infrastructure, including domain names and hosting services, to facilitate these fraudulent operations on a global scale.
Liu Lizhi, a Chinese national overseeing Funnull’s activities, reportedly maintained detailed records tracking employees’ roles and the deployment of websites used in phishing and crypto fraud. According to the Treasury’s announcement, these sites frequently redirected users from legitimate web pages to malicious ones through injected code, a tactic that made detection and prevention even more difficult.
Deputy Treasury Secretary Michael Faulkender emphasized the gravity of the issue, stating, “This action highlights our commitment to dismantling the criminal networks behind these scams that rob Americans of their hard-earned money.” The Treasury’s statement underlined that Funnull was linked to the majority of virtual currency investment scams reported to the FBI, with individual victims losing an average of more than $150,000 each.
The operation Funnull ran included acquiring IP addresses from international cloud providers, which it then resold to scammers who used these to launch fraudulent investment platforms, phishing sites, and illicit gambling operations. This network enabled a far-reaching series of scams, targeting users with sophisticated digital attacks to siphon off their cryptocurrency assets.
While the official losses reported to authorities exceed $200 million, Treasury officials caution that the actual amount is likely higher, as many victims do not report such crimes due to embarrassment or fear.
The sanctions freeze all U.S.-based assets of both Funnull Technology and Liu Lizhi. Additionally, American companies and individuals are now legally barred from conducting any business with Funnull or any entities where the company or Lizhi holds a majority stake.
This latest enforcement is part of a broader Treasury initiative aimed at crippling the digital infrastructure behind international cybercrime. OFAC has previously targeted notorious groups such as Evil Corp—a Russian cybercrime syndicate accused of large-scale ransomware attacks—and individuals operating illicit marketplaces on the dark web.
Earlier this year, sanctions were also placed on Tron Wallets tied to Iran-backed Houthi rebels, illustrating the U.S. government’s growing focus on blockchain-based financial crimes connected to geopolitical adversaries.
As crypto fraud continues to evolve, these actions by the Treasury reflect an ongoing effort to hold not only direct perpetrators accountable but also those who provide the enabling technology and infrastructure that make these scams possible. The hope is that cutting off these behind-the-scenes facilitators will make it harder for fraudsters to execute such damaging schemes in the future.
