In recent months, the U.S. Department of the Treasury took decisive action against Funnull Technology Inc., a Philippines-based company, unmasking a complex web behind large-scale cyber scams in the digital age. This move shines a harsh light on “pig butchering” scams—cryptocurrency frauds that have drained victims, predominantly in the United States, of staggering sums. The sanctions not only target the scammers but also the underlying infrastructure supports, signalling a strategic evolution in the battle against cybercrime.
Funnul Technology Inc., headquartered in Taguig, sits at the core of this operation. Accused of supplying critical internet infrastructure and technological services to hundreds of thousands of fraudulent websites, Funnull helped keep the scam machine running. These websites propagate virtual currency investment schemes that lure victims with fake data and fake investment returns. The scammers “fatten up” their prey before convincing them to pour in more funds until their accounts dry up. The company’s administrator, Liu Lizhi, is also hit with sanctions, highlighting personal accountability within the tech enablement layer of cybercrime. According to the U.S. Treasury’s Office of Foreign Assets Control (OFAC), Funnull’s services—ranging from domain management to hosting—were indispensable in maintaining the extensive network used to defraud thousands. This kind of technical support turns out to be the lifeblood for these fraudulent operations.
The financial impact of these scams is chilling. FBI reports reveal that U.S. victims have lost over $200 million, with average losses per person exceeding $150,000. These figures underscore not only the severity of the crime but also the sophisticated integration of psychological manipulation and reliable tech infrastructure. “Pig butchering,” as the term crudely puts it, is a calculated strategy mixing charm, fabricated success stories, and a steady drip of “returns” designed to build trust and encourage deeper financial commitment. Reliable hosting and seamless domain registrations, services Funnull allegedly provided, allow these scams to maintain an illusion of legitimacy and scale, making it easier to trap victims across the globe.
This latest sanction reflects a shift in regulatory tactics, focusing not only on the direct fraudsters but also on those who facilitate their schemes. Freezing the assets of Funnull and Liu Lizhi within U.S. jurisdiction and barring American entities from any interaction with them aims to sever the scam network’s operational lifelines. It casts a clear net that even seemingly legitimate entities offering “back-end” support cannot hide behind ignorance. Cybercrime increasingly depends on legit-looking service providers who unknowingly or deliberately enable fraudulent networks. Taking down these “enablers” is an essential new frontier, as law enforcement agencies move upstream from arresting individuals to dismantling the very infrastructure that fuels scams.
The complexity of fighting these schemes is immense. Scam sites supported by Funnull reach victims worldwide, yet leave behind digital footprints traceable to infrastructure providers. Agencies like the FBI have recognized domain registration, content delivery networks, and web hosting as critical choke points in the cybercrime ecosystem. Disrupting these underlying technical frameworks can cripple scam operations, reduce their scale, and prevent future victimization. The Treasury’s action against Funnull exemplifies this strategic pivot—a move to attack the scaffolding behind the fraud, not just the faces on the front lines.
At the same time, the incident exposes the broader paradox posed by cryptocurrency and emerging technologies. The decentralized and borderless qualities that make cryptocurrencies revolutionary also provide fertile ground for scammers to operate with eerie anonymity. While cryptocurrencies promise financial innovation, they also complicate oversight and enforcement. Addressing this requires global cooperation, advanced detection mechanisms, and collaboration among tech companies, regulators, and international partners. Without such concerted efforts, the rapid pace of cybercrime tactics risks outstripping the ability of current defenses to respond.
Ultimately, the sanctions against Funnull Technology Inc. and its administrator mark a significant strike against a $200 million crypto scam network’s backbone. By targeting the technological support infrastructure that enabled “pig butchering” scams, the U.S. government aims to blunt the reach and efficiency of these cybercriminal operations. This case highlights the urgent need to cast a wider net—not just at fraudsters themselves but at the platforms and service providers that empower vast illicit networks. Continuing partnerships between governments and law enforcement worldwide will be crucial to protecting investors and preserving the promise of emerging financial technologies in an age of ever-evolving cyber threats.
