US Sanctions Cloud Provider 'Funnull' as Top Source of 'Pig Butchering' Scams

The U.S. government has taken a major step in cracking down on online scams by imposing economic sanctions on Funnull Technology Inc., a Philippines-based company that provides computer infrastructure for hundreds of thousands of websites involved in virtual currency investment scams known as “pig butchering.” This move comes after months of investigative reporting and research by KrebsOnSecurity, which revealed the role of Funnull in facilitating these cybercrimes.

In January 2025, KrebsOnSecurity detailed how Funnull was being used as a content delivery network that catered to cybercriminals seeking to route their traffic through U.S.-based cloud providers. The findings were based on research from the security firm Silent Push, which discovered in October 2024 that a vast number of domains hosted via Funnull were promoting gambling sites that bore the logo of the Suncity Group, a Chinese entity named in a 2024 UN report for laundering millions of dollars for the North Korean state-sponsored hacking group Lazarus.

"Americans lose billions of dollars annually to these cyber scams, with revenues generated from these crimes rising to record levels in 2024," reads a statement from the U.S. Department of the Treasury, which sanctioned Funnull and its 40-year-old Chinese administrator Liu Lizhi. "Funnull has directly facilitated several of these schemes, resulting in over $200 million in U.S. victim-reported losses." The Treasury Department said Funnull’s operations are linked to the majority of virtual currency investment scam websites reported to the FBI.

The pig butchering scam is a rampant form of fraud wherein people are lured by flirtatious strangers online into investing in fraudulent cryptocurrency trading platforms. Victims are coached to invest more and more money into what appears to be an extremely profitable trading platform, only to find their money is gone when they wish to cash out. The scammers often insist that investors pay additional “taxes” on their crypto “earnings” before they can see their invested funds again (spoiler: they never do). A shocking number of people have lost six figures or more through these pig butchering scams.

The FBI has released a technical writeup of the infrastructure used to manage the malicious Funnull domains between October 2023 and April 2025. The agency said that Funnull directly facilitated pig butchering and other schemes that resulted in more than $200 million in financial losses by Americans.

In imposing sanctions on Funnull, the U.S. government is sending a clear message to cybercriminals that they will not be tolerated in the country's digital landscape. As the scammers continue to operate in the shadows, it remains to be seen whether this move will have the desired effect of disrupting their operations and bringing them to justice.

The Role of Funnull in Facilitating Cybercrime

Funnull is a Philippines-based company that provides computer infrastructure for hundreds of thousands of websites. However, according to KrebsOnSecurity's research, it was being used as a content delivery network that catered to cybercriminals seeking to route their traffic through U.S.-based cloud providers.

The security firm Silent Push found that Funnull was a criminal content delivery network (CDN) that carried a great deal of traffic tied to scam websites. The traffic was funneled through a dizzying chain of auto-generated domain names and U.S.-based cloud providers before redirecting to malicious or phishing websites.

The Impact of the Sanctions

The sanctions imposed on Funnull are likely to have a significant impact on the operation of these cybercrime networks. By cutting off access to U.S.-based cloud providers, the scammers will no longer be able to funnel their traffic through this route.

However, it remains to be seen whether this move will be enough to disrupt the operations of Funnull and its associates. The scammers are likely to find alternative routes for their traffic, and it may take time for law enforcement agencies to track them down and bring them to justice.

The Future of Online Safety

As the U.S. government takes steps to crack down on online scams, it is clear that the fight against cybercrime will not be won overnight. However, by imposing sanctions on companies like Funnull and taking action against those who facilitate these crimes, we can start to make progress.

It is also important for consumers to remain vigilant when using online services. By being aware of the potential risks and taking steps to protect themselves, we can reduce our vulnerability to these types of scams.

The Bottom Line

In conclusion, the sanctions imposed on Funnull Technology Inc. are a significant step in the fight against cybercrime. However, it is clear that this move is just one part of a larger effort to protect online users from these threats.