US Treasury Sanctions Philippines-Based Company for Facilitating Major Cyber Scams
The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has taken a significant step in combating cybercrime by sanctioning Funnull Technology Inc., a Philippines-based company, and its administrator, Liu Lizhi, for their role in facilitating major romance scams that have caused over $200 million in losses to US victims.
Romance scams are a type of online fraud where scammers pretend to build a romantic relationship with someone to gain their trust and ultimately exploit them, often for financial gain. Funnull Technology Inc., which supports crypto scams by bulk-buying IPs and selling them to cybercriminals to host fake platforms, has been linked to most scams reported to the FBI.
The company's involvement in virtual currency investment scams, commonly known as "pig butchering," has made it a critical player in the global cybercrime ecosystem. By operating under the guise of a legitimate IT infrastructure provider, Funnull Technology Inc. bulk-purchases IP addresses and leases them to cybercriminals, who use these resources to host fraudulent platforms mimicking trusted exchanges like Coinbase or Binance.
Liu Lizhi, a Chinese national and administrator of Funnull, has been sanctioned by OFAC under Executive Orders 13694 and 14144 for supporting cyber activities that threaten US national security and economic stability. Liu also managed internal documents tracking employee tasks tied to these operations.
As a result of the sanctions, all US-based assets of sanctioned individuals or entities, including those linked to Funnull, are now blocked and must be reported to OFAC. US persons are generally prohibited from conducting transactions involving these blocked parties. Violating these sanctions can lead to civil or criminal penalties, and even indirect dealings may trigger enforcement actions.
The FBI has also released a FLASH alert to disseminate indicators of compromise (IOCs) associated with malicious cyber activities linked to Funnull Technology Inc. Since January 2025, the FBI has identified 548 unique Funnull Canonical Names (CNAME) linked to over 332,000 unique domains. In April 2025, a sample of eight domains were analyzed to depict a CNAME analysis that resolved to four CNAMEs tied to Funnull infrastructure.
Between October 2023 and April 2025, multiple patterns of IP address activity were observed from several domains using Funnull infrastructure. During this time frame, hundreds of domains using Funnull infrastructure simultaneously migrated from one IP address to another either on the same exact day or within the same timeframe.
The Impact of Cybercrime on US Victims
According to recent data, Americans lose billions of dollars annually to cyber scams. The revenues generated from these crimes rose to record levels in 2024, with Funnull Technology Inc. emerging as a critical player in the global cybercrime ecosystem.
The Importance of International Cooperation in Combating Cybercrime
The sanctioning of Funnull Technology Inc. and its administrator, Liu Lizhi, highlights the importance of international cooperation in combating cybercrime. The US Treasury's Office of Foreign Assets Control has taken a significant step in disrupting the global cybercrime network by targeting a key player in the Philippines.
Stay Safe Online
Cybercrime is a growing concern worldwide, and it's essential for individuals to take steps to protect themselves online. Here are some tips to help you stay safe:
- Be cautious of suspicious emails or messages that ask for personal or financial information.
- Use strong passwords and enable two-factor authentication whenever possible.
- Variety your passwords and avoid using the same password across multiple accounts.
- Keep your operating system and software up to date with the latest security patches.
By staying informed and taking steps to protect yourself online, you can help prevent cybercrime and keep your personal information safe.