U.S. Treasury Sanctions Philippines Tech Firm for Aiding $200M Crypto Scam Network

U.S. Treasury Sanctions Philippines Tech Firm for Aiding $200M Crypto Scam Network

U.S. Takes Aim at Philippine-Based Tech Firm for Crypto Scam Involvement

Funnull Technology Accused of Supporting Thousands of Fraudulent Crypto Platforms

WASHINGTON D.C., May 29 – The U.S. Treasury has issued sweeping sanctions against Funnull Technology, a tech company based in the Philippines, for allegedly facilitating large-scale cryptocurrency scams. According to the Office of Foreign Assets Control (OFAC), the company’s operations are tied to crypto fraud schemes that have collectively cost victims over $200 million.

The firm reportedly supported thousands of scam websites, many of which impersonated legitimate crypto investment platforms to lure and deceive unsuspecting users.

Scam Infrastructure: Selling IPs, Redirecting Traffic, and Manipulating Code

Funnull is accused of purchasing bulk IP addresses from cloud providers and reselling them to cybercriminals. These IPs were used to host cloned websites of trusted investment firms—sites that appeared legitimate but were designed to steal users’ crypto assets.

OFAC also revealed that in 2024, Funnull acquired a public web developer code repository—a toolkit widely used in legitimate projects—then modified it to redirect users to scam and online gambling websites.

“These services make it easier for cybercriminals to impersonate trusted brands and evade takedowns by quickly rotating domain names and IP addresses,” OFAC stated.

Chinese National Liu Lizhi Added to U.S. Sanctions List

Alongside the firm, the U.S. sanctioned Liu Lizhi, a Chinese national believed to be the administrator managing Funnull’s employees. Lizhi has now been added to OFAC’s Specially Designated Nationals and Blocked Persons (SDN) list.

This listing means any assets Liu holds in the U.S. are frozen, and U.S. citizens and companies are barred from conducting business with him or Funnull. Violators may face civil or criminal charges.

Crypto Wallets and Triad Nexus Ties

Two cryptocurrency wallets linked to Funnull were also sanctioned. Blockchain analysis firm Chainalysis stated that the wallets were likely used to receive payments from cybercriminals, and had indirect exposure to scam-related infrastructure vendors.

“Funnull plays a central role in the Triad Nexus, a network connected to more than 200,000 scam-related hostnames and fake trading apps,” Chainalysis noted.

What the Sanctions Mean

As of May 29, all U.S. persons and entities are prohibited from engaging with Funnull Technology or Liu Lizhi if they control 50% or more of any business interest. U.S. authorities emphasized that anyone found in violation could face serious penalties under U.S. sanctions law.