The United States government has announced new sanctions against a technology company based in the Philippines. The company, called Funnull Technology Inc., is being accused of helping online scammers carry out large-scale fraud using fake cryptocurrency investments.
According to U.S. officials, Funnull sold internet services to cybercriminals who ran these scams. The company reportedly bought large blocks of internet addresses and then passed them on to shady groups that used them to create fake websites and contact victims. These fake websites looked like real cryptocurrency investment platforms but were designed to steal money.
These kinds of scams are known as “pig butchering”. The strange name comes from how scammers slowly gain their victims’ trust, like fattening a pig before the slaughter. They pretend to build a relationship, sometimes even posing as love interests or financial advisors. Once the victim is convinced to invest a large amount of money, the scammers disappear, taking everything.
The U.S. Treasury said it is cracking down on the network that allows these scams to happen. Funnull Technology, they believe, played a major role in helping these criminals stay hidden and continue tricking people around the world.
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Along with the company, the U.S. has also placed sanctions on Liu Lizhi, a Chinese citizen who is allegedly an administrator at Funnull. He is said to be 40 years old and has links to addresses in Shanghai and Ganzhou, China.
Fake Websites, Real Damage
What makes these scams so dangerous is how realistic they look. Many of them have professional-looking websites, official-sounding names, and even fake customer service agents. Victims are often shown fake profits on these sites to make them believe their investment is growing.
But behind the scenes, it’s all fake.
Earlier this year, cybersecurity researchers linked Funnull to a huge network of websites suspected to be part of these scams. These weren’t just one or two websites—it was thousands. Some of the sites were also connected to online gambling and possible money laundering operations.
The scammers using Funnull’s internet services didn’t stop at just stealing money. Reports say these operations are often run by organised crime groups and sometimes involve human trafficking. In some cases, people are forced to work in scam centres against their will.
The U.S. Treasury’s sanctions are meant to cut off these criminal networks from the digital tools they rely on. By blocking access to U.S. systems and freezing any assets within American reach, the government hopes to make it harder for these scammers to operate.
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Sanctions Send a Strong Message
The U.S. move doesn’t only affect the company. It also targets key individuals like Liu Lizhi, who officials say helped manage the technical side of the operation and supported the scam infrastructure.
The sanctions mean that any U.S.-based businesses or banks are now banned from doing business with Funnull. If the company has any money in U.S. accounts, it will be frozen. Also, if other companies continue to work with Funnull, they too could face penalties.
This action is part of a larger effort by the U.S. government to fight online scams, especially those involving digital currency. In recent years, the number of these scams has exploded, costing people billions of dollars.
Security experts say part of the reason for the rise is the use of new technology. Some scammers now use advanced software, like artificial intelligence, to sound more convincing and to reach more victims at once. That makes stopping these scams even more urgent.
The U.S. Treasury emphasised that taking down support networks—like the digital infrastructure provided by Funnull—is a key part of stopping this growing threat.
