U.S. Treasury Targets Philippine Tech Firm Over Involvement in Pig Butchering Scams

In a decisive move against digital deception, the U.S. Department of the Treasury has sanctioned Funnull Technology Inc., a tech firm based in the Philippines, for its role in facilitating pig butchering scams—crypto frauds that have siphoned over $200 million from unsuspecting victims. This action, announced on June 5, 2025, targets not only the company but also Liu Lizhi, a Chinese national and Funnull’s administrator, underscoring a broader effort to clamp down on cybercriminal enterprises.

Unmasking the Scams

Funnull Technology isn’t just any tech company. According to the Treasury’s Office of Foreign Asset Control (OFAC), it provided the digital backbone for a staggering number of fraudulent websites. These sites prey on individuals by mimicking legitimate platforms, luring victims into bogus crypto investments. The average victim in these scams loses over $150,000—a sobering figure that highlights the sophistication and scale of this digital con game. This comes amid a broader trend of increasing crypto-related losses, as detailed in our report on the recent spike in crypto losses.

“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,” remarked Deputy Secretary of the Treasury Michael Faulkender. His statement reflects a commitment to fostering a secure digital asset ecosystem, where innovation isn’t overshadowed by fraud.

The Mechanics Behind the Fraud

Pig butchering scams are insidious, often starting with an innocuous message—sometimes romantic, often unsolicited. The victim is courted over time, akin to fattening a pig before the slaughter, until they are persuaded to invest large sums into what they believe are legitimate opportunities. In reality, these are traps set by organized crime groups, many operating from Southeast Asia.

Funnull Technology allegedly played a crucial role by supplying the necessary computer infrastructure. They reportedly purchased IP addresses in bulk from cloud providers worldwide, which were then used to host these scam platforms. Liu Lizhi, the firm’s administrator, is said to have managed spreadsheets detailing employee tasks, including assigning domain names for fraudulent activities.

It’s not just a tale of digital theft; it’s also one of human exploitation. Many of these scams are carried out by individuals trapped in labor trafficking, forced to operate under dire conditions. This grim aspect adds another layer to the Treasury’s crackdown, highlighting the intersection between cybercrime and human rights abuses.

A Broader Context

This isn’t OFAC’s first foray into tackling such schemes. Last year, the agency sanctioned Cambodian tycoon Ly Yong Phat for his involvement in similar scams tied to human trafficking and torture. By placing Funnull and Liu on the Specially Designated Nationals list, the U.S. effectively bans any financial interaction with them, aiming to quarantine their influence.

According to sources well-versed in cybersecurity, this strategy seems to be part of a larger tapestry. “We’re seeing an increased focus on the infrastructural enablers of these scams,” noted Amelia Cheng, a crypto analyst based in Singapore. “By targeting the tech providers, OFAC is cutting off the oxygen supply to these operations.” This reflects a broader trend in the industry, as noted in our coverage of the shift in compliance mindset among crypto firms.

Looking Ahead

The implications of this move are multifaceted. On one hand, it signals a warning to other tech entities that might be skirting the ethical line for profit. On the other, it raises questions about the ongoing battle between regulatory bodies and the ever-evolving tactics of cybercriminals.

While the Treasury’s actions are a step in the right direction, they also underscore the challenges of policing a borderless digital world. As the crypto industry continues to grow, the need for robust security measures becomes increasingly critical.

For now, the spotlight is firmly on Funnull Technology and its alleged misdeeds. But the broader narrative remains one of vigilance and adaptation. The question is—can regulators keep pace with the criminals, or will the latter continue to find new ways to exploit the system? In the world of digital finance, the stakes have never been higher.

Source

This article is based on: OFAC Sanctions Philippines-Based Tech Company For Facilitating Pig Butchering Schemes

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