A Philippine company, Funnull Technology, has been accused of providing tech infrastructure to thousands of fraudulent sites, resulting in losses over $200 million. The US Treasury identified Funnull as a key player in large-scale crypto scams.
These scams, known as “Pig Butchering,” involve manipulative tactics where scammers build trust with victims before convincing them to invest in fake crypto opportunities. The average American victim lost around $150,000.
The company allegedly provided IP addresses in bulk, managing client lists for these scams. This move blocks US companies and individuals from doing business with Funnull Technology.
The US Treasury Department imposed sanctions on Funnull Technology Inc., a Philippine-based tech company, for providing digital infrastructure to hundreds of thousands of websites involved in “Pig Butchering” scams.
These scams have generated losses of over $200 million for American victims alone. The sanctions were announced by the Office of Foreign Assets Control (OFAC), a key entity in tracking illicit funds.
The median loss per American victim was over $150,000, according to the official statement reported by CoinDesk. Michael Faulkender, Under Secretary of the Treasury, emphasized that this action aims to disrupt the structures supporting these criminal networks.
What is “Pig Butchering” and how does it work?
“Pig Butchering” scams involve prolonged psychological manipulation where scammers establish contact with victims, often through unsolicited texts or romantic messages, before persuading them to invest in fake crypto opportunities.
These networks are mainly controlled by Southeast Asian criminal organizations, which employ labor trafficking victims in deplorable conditions to execute the scams.
Funnull Technology’s role in the criminal network
Funnull Technology was identified as a key provider of bulk IP addresses to cloud services worldwide, used to host fake investment pages, illegal betting sites, and phishing platforms.
The sites were designed to mimic legitimate pages visually, building trust in victims and facilitating fund appropriation. The company offered these services directly to criminal networks, positioning itself as a crucial technical node in the fraud ecosystem.
Alongside Funnull Technology, Liu Lizhi, a Chinese citizen and company administrator, was also sanctioned. The OFAC revealed that Liu possessed internal documentation, including employee performance records and task assignments, including domain allocation to cybercriminals.
The US intensifies consumer protection strategy
The sanctions are part of a broader US government strategy to disrupt digital crime logistics. Since 2022, the OFAC has focused on dismantling networks exploiting digital tools for mass fraud, especially those affecting the crypto ecosystem.
The Treasury emphasized that it will continue using sanctions to protect American consumers and ensure a safer digital environment.