- The US Treasury Office imposed sanctions on Funnull Technology Inc., a company based in the Philippines for scamming Americans.
- Liu Lizhi, a Chinese national who served as the firm’s administrator was also sanctioned.
- A statement by the Treasury office said scams are largely perpetrated by criminal organizations based in Southeast Asia.
- The Trump administration has continuously positioned itself as a crypto friendly government.
The U.S. The Department of the Treasury has sanctioned a Philippines based technology firm Funnull Technology Inc and its administrator for allegedly facilitating cryptocurrency scams.
These scams have reportedly defrauded American victims over $200 million.
According to a statement published Thursday, the Treasury’s Office said it had imposed sanctions on Funnull Technology Inc, a company based in the Philippines, and Liu Lizhi, a Chinese national who served as the firm’s administrator.
The company is accused of providing critical infrastructure for international fraud operations, including the hosting of deceptive websites tied to so-called “pig butchering” scams.
How did Funnull Technology facilitate the scam?
According to Treasury officials, the company acquired IP addresses from international cloud service providers and resold them to cybercriminals, who used them to set up fraudulent platforms for investment fraud, phishing, and illegal online gambling.
Funnull Technology also allegedly injected malicious code into legitimate websites to redirect users to scam-operated domains.
The company is reportedly connected to a large number of cryptocurrency fraud websites flagged in reports to the FBI.
The statement by the Treasury read, “ Funnull is linked to the majority of virtual currency investment scam websites reported to the FBI. U.S.-based victims of these scam websites have reported over $200 million in losses, with average losses of over $150,000 per individual.”
Authorities emphasized that the actual figure is likely higher, noting that many victims of online scams do not report the crimes.
What next?
The sanctions freeze all of the U.S.-based assets belonging to Funnull Technology Inc. and Liu Lizhi.
They also prohibit American individuals and companies conducting business with either party or any entities in which they hold a 50% or greater stake.
Furthermore, violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons.
Whilst an extremely crypto friendly administration, the Deputy Secretary of the Treasury Michael Faulkender highlighted the United States’commitment to a safe and legitimate digital economy.
“The United States is strongly committed to ensuring the continued growth of a legitimate, safe, and secure digital asset ecosystem, including the use of virtual currencies and similar technologies.”, he said.
