US Sanctions Philippine Firm for Crypto Scams
US Sanctions Philippine Tech Firm for Crypto Scams
The US Treasury Department’s Office of Foreign Assets Control (OFAC) has sanctioned Funnull Technology, a Philippines-based technology firm, and its administrator, Liu Lizhi, for allegedly providing services to thousands of crypto scam websites. The sanctions, announced May 29, 2025, freeze any US-held assets and prohibit US individuals and entities from conducting business with them.
Key findings from the OFAC announcement include:
- Funnull is linked to a significant number of crypto scam websites reported to the FBI.
- Victims’ losses are estimated to exceed $200 million.
- Funnull sells bulk IP addresses to scammers, enabling them to host clone websites of legitimate investment platforms.
- In one instance, Funnull purchased and modified code to redirect users of legitimate websites to scam sites and online gambling platforms.
- Two cryptocurrency wallet addresses associated with Funnull, identified by Chainalysis as likely receiving payments from cybercriminals, were also sanctioned.
Funnull's Role in Facilitating Crypto Scams
OFAC stated that Funnull's services enable cybercriminals to easily impersonate trusted brands, quickly switch domain names and IP addresses when legitimate providers attempt shutdowns, making it difficult to track and stop their operations. Chainalysis further revealed that Funnull is a key player in the Triad Nexus network, involving over 200,000 unique hostnames linked to investment scams and fake trading apps.
Impact of Sanctions
The sanctions effectively prohibit any interaction with Funnull and Liu Lizhi's assets and business interests in the US. Violations can result in significant civil and criminal penalties. This action underscores the increasing focus on combating cryptocurrency-related crime and holding those who facilitate such activities accountable.
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