Philippines Tech Company Sanctioned by US for Alleged Role in Crypto Scams
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On May 29, the U.S. Treasury sanctioned a Philippine firm, Funnull Technology, and its alleged administrator, Liu Lizhi. U.S. officials stated that the company provides critical computer infrastructure, like servers and hosting services, to hundreds of thousands of websites used in large crypto scams.
Over $200 Million Lost to Investment-Based Crypto Scam Operations
According to an official press release by the U.S. Treasury, the crypto scams carried out by Funnull Technology and its linked administrator are investment-like, known as “pig butchering.”
The scam entails fraudsters building fake relationships with victims to slowly convince them to invest in bogus crypto platforms.
U.S. authorities stated that Funnull Technology crypto scams have led to over $200 million in reported losses from victims in the United States. On average, each victim lost about $150,000.
Today, the Department of the Treasury’s Office of Foreign Assets Control sanctioned Funnull Technology Inc., a Philippines-based company that provides computer infrastructure for hundreds of thousands of websites involved in virtual currency investment scams, commonly known as…
— Treasury Department (@USTreasury) May 29, 2025
However, officials believe the true impact is likely much higher, as many people affected by scams choose not to come forward or report what happened.
Michael Faulkender, Deputy Secretary of the Treasury, said that Funnull robbed Americans of their hard-earned savings and threatened the safety of the digital finance space.
He added that the U.S. will continue pushing for a secure, trusted digital asset ecosystem.
Further investigators revealed Funnull’s mode of operation. The firm purchases large quantities of IP addresses from global cloud service providers and sells them to cyber criminals.
The scammers use them to run websites that appear legitimate but are part of organized fraud.
The U.S. Treasury also discovered that in 2024, Funnull bought a popular code library used by web developers. They tampered with the code to redirect visitors from real websites to fake crypto pages and illegal gambling sites.
Some of these sites are connected to Chinese criminal money laundering rings.
Liu Lizhi, a Chinese national who allegedly ran operations at Funnull, has also been sanctioned.
He is now listed under the authority’s Specially Designated Nationals and Blocked Persons (SDN) list.
This means all his assets in the U.S. are frozen. U.S. citizens and businesses are banned from doing business with him, and anyone who violates this ban could face serious legal consequences.
US and Europe Lead the Charge Against Crypto Scam Perpetrators
The Funnull case is part of a wider global crackdown on crypto scams.
Earlier in May, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) restricted the Huione Group, a Cambodian-based conglomerate, from accessing the American banking system.
1/ Today, the @USTreasury's FinCEN issued a finding and notice of proposed rulemaking (NPRM) identifying Cambodia-based Huione Group as a “primary money laundering concern,” moving to block the group from the U.S. financial system. ⚠️
— Chainalysis (@chainalysis) May 1, 2025
Authorities found that the group had helped move $4 billion in illicit money since August 2021.
North Korea’s Lazarus Group tied $37 million of the sum to cyber heists, and another $36 million came from pig butchering-style crypto scams.
Then, on May 13, blockchain analytics firm Elliptic exposed a massive laundering operation run through a Telegram marketplace called Xinbi Guarantee.
Legally registered in Colorado as Xinbi Co. Ltd., the platform had 233,000 users and was used to launder over $8.4 billion in stablecoins and other crypto assets. Much of the money came from Southeast Asian crypto scams and other organized crimes.
Just one day later, Europol and Spanish police dismantled a major “mafia crypto bank.” This network handled more than €21 million ($23.5 million) in illegal cryptocurrency transactions.
Chinese and Middle Eastern crime groups used it to launder money tied to drug trafficking and migrant smuggling.
Authorities seized 77 bank accounts, €421,000 in cash, €183,000 in cryptocurrency, and 18 luxury vehicles.
