The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Funnull Technology Inc., a company based in the Philippines, and its administrator, Liu Lizhi. The company is accused of facilitating cyber scams known as "pig butchering," resulting in significant financial losses for Americans. These scams have become increasingly profitable, with 2024 seeing record revenues from such criminal activities.
"Today’s action underscores our focus on disrupting the criminal enterprises, like Funnull, that enable these cyber scams and deprive Americans of their hard-earned savings,” stated Deputy Secretary of the Treasury Michael Faulkender. He emphasized the U.S.'s commitment to fostering a secure digital asset ecosystem.
The Federal Bureau of Investigation (FBI) collaborated closely with OFAC on this action. To aid in dismantling associated websites, the FBI will release a cybersecurity advisory detailing Funnull's operations and infrastructure. The public is encouraged to report online scams to the FBI’s Internet Crime Complaint Center (IC3).
In September 2023, FinCEN issued an alert about pig butchering scams largely conducted by Southeast Asian criminal organizations using trafficked laborers to lure victims into fake investment schemes involving virtual currencies.
Funnull Technology Inc. assists these scams by acquiring IP addresses from global cloud services and selling them to criminals who create fraudulent platforms. Victims have reported over $200 million in losses due to these schemes, though actual figures may be higher as many incidents go unreported.
Funnull employs domain generation algorithms (DGAs) to produce numerous domain names for scam sites and offers web design templates that mimic legitimate brands. This allows scammers to rapidly switch domains when authorities intervene. In 2024, Funnull allegedly altered code repositories maliciously redirecting users from legitimate sites to scam or gambling websites linked to Chinese money laundering operations.
Liu Lizhi is identified as an administrator at Funnull involved in managing employee tasks related to fraud domains and other illegal activities.
Under Executive Orders 13694 and 14144, OFAC designated both Funnull and Liu for their roles in supporting cyber-enabled threats affecting U.S. national security and economic interests.
Following this designation, any property owned by Funnull or Liu within U.S jurisdiction is blocked. Transactions involving these entities are prohibited unless authorized by OFAC.
Sanctions violations can lead to civil or criminal penalties under strict liability principles outlined in OFAC's guidelines. Financial institutions engaging with blocked persons may also face exposure risks.
OFAC emphasizes that sanctions aim not just at punishment but encouraging positive behavior change among designees while providing mechanisms for removal requests from sanction lists if warranted.
For more information on today's designations or reporting internet crimes visit relevant official links provided by OFAC and FBI respectively.
