In a sweeping move to combat rising cybercrime in the cryptocurrency space, the U.S. Treasury Department has sanctioned Funnull Technology Inc., a Filipino tech company, for its alleged role in facilitating a global network of digital fraud. The sanctions also target Liu Lizhi, a Chinese national who managed the company’s operations, accusing him of enabling cybercriminals to defraud U.S. citizens out of more than $200 million.
The charges come amid increasing scrutiny of international firms believed to be supplying infrastructure for crypto scams, often involving phishing, online investment fraud, and the use of malicious code. This latest action by the Office of Foreign Assets Control (OFAC) is part of a broader effort to dismantle the digital backbone supporting these fraudulent operations.
What Is Funnull Technology Inc.?
Funnull Technology Inc. is a tech firm based in the Philippines, now under global scrutiny for its alleged involvement in cyber scams targeting cryptocurrency users. According to OFAC, the company provided key infrastructure services—such as IP address leasing, website hosting, and code deployment—that enabled scammers to operate at scale.
The company is linked to a type of scam known as “pig butchering,” a social engineering tactic where criminals build emotional trust with victims before convincing them to invest in fraudulent crypto schemes. These scams often start on dating platforms or social media, leading victims to sophisticated fake trading platforms designed to steal their assets.
How the $200M Scam Worked
The Treasury Department alleges that Funnull was directly responsible for supporting websites and networks used in fraudulent investment platforms. These platforms tricked users into connecting their cryptocurrency wallets, enabling hackers to gain full access and drain accounts.
Key tactics used by scammers in this scheme included:
Reselling IP addresses from major global cloud providers
Injecting phishing code into legitimate websites
Assigning fraudulent domain names for scam operations
Creating fake crypto trading platforms with professional interfaces
The fraud reportedly impacted hundreds of U.S. citizens, with individual losses averaging over $150,000. Authorities believe the actual number of victims and the total value lost may be even higher, as many people never report the scams out of embarrassment or fear.
OFAC’s Strategy to Combat Crypto Scams
The Office of Foreign Assets Control (OFAC) is increasing its focus on the digital infrastructure behind global cybercrimes. Rather than only going after individual fraudsters, OFAC is targeting the entire support ecosystem—including domain registrars, server leasing companies, and software providers that knowingly enable these scams to thrive.
This coordinated enforcement sends a powerful message to international operators: facilitating or turning a blind eye to criminal activity will not be tolerated. By imposing economic sanctions on Funnull Technology Inc. and its network, OFAC aims to cut off access to U.S. financial systems and partnerships, ultimately choking the firm’s ability to operate.
OFAC’s Director Andrea Gacki emphasized that cracking down on cybercrime “requires a full-spectrum response,” particularly when victims span multiple countries and platforms. The sanctions also enable U.S. partners globally to implement similar enforcement measures.
Implications for the Philippines and Tech Sector
The Philippines, home to a booming tech outsourcing industry, is now facing difficult questions about regulatory oversight and cybersecurity. The sanctioning of Funnull Technology Inc. underscores the urgent need for Philippine authorities to step up their monitoring of tech firms operating in critical spaces such as cloud infrastructure and online financial tools.
Key issues include:
Lack of due diligence in tech company licensing
Minimal enforcement of anti-money laundering protocols in digital operations
Insufficient collaboration with global cybersecurity agencies
With the rise of the Philippines as a hub for both fintech and remote IT services, international partners are demanding higher compliance standards. Experts say that the country’s continued reputation as a trustworthy digital economy will depend on its willingness to adapt fast and root out bad actors.
Global Reaction from Crypto Community
The crypto community has reacted with a mix of relief and concern. Relief that the U.S. government is actively dismantling large-scale scams—but concern over the sophistication and scale of the infrastructure supporting them. Many firms have begun to audit their third-party service providers, especially those based in low-regulation countries, to ensure they’re not indirectly enabling fraud.
Major crypto influencers have also used the story to warn their audiences about the ongoing threat of phishing scams and fake investment platforms. Several victims of the scam came forward anonymously, describing how they were led to believe they were engaging in legitimate trading before watching their assets disappear overnight.
These cautionary tales are now being shared across Reddit, X (formerly Twitter), and Telegram to increase awareness among newer crypto investors.
Calls for Tighter Global Cooperation
International law enforcement bodies, including Interpol and Europol, have highlighted this case as a model for how digital fraud must be tackled: through cross-border coordination, tech accountability, and legal pressure. The sanctions set a precedent for targeting infrastructure—not just users.
Analysts say the $200 million scam is only the tip of the iceberg, with other firms likely under investigation for similar roles. As cybercrime becomes more professionalized, governments must evolve faster or risk falling behind increasingly sophisticated networks.
Conclusion
The U.S. sanctions against Funnull Technology Inc. highlight a dangerous intersection of digital innovation and criminal exploitation. As cryptocurrency grows in popularity, so too does the complexity of the scams surrounding it. By holding infrastructure providers accountable, regulators are signaling a shift toward deeper, more systemic enforcement.
For the Philippines, the case is both a wake-up call and an opportunity to lead in the region by setting higher cybersecurity standards. For investors and users, it’s a sharp reminder to remain vigilant, verify platforms, and protect their assets at all times.
