The United States has frozen the assets of a Philippines-based tech company, Funnull Technology Inc., and its Chinese administrator Liu Lizhi for helping run a massive online scam operation that has cost Americans more than $200 million.
Funnull allegedly provided computer infrastructure to support fake investment websites in a scheme known as “pig butchering,” where scammers lure victims into fake online relationships before convincing them to invest money that ultimately disappears. Average losses amount to over $150,000 per individual.
“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,” said US Deputy Treasury Secretary Michael Faulkender in a media release.
Funnull and Liu are accused of buying bulk IP addresses and selling them to cybercriminals to host fake investment platforms. The company also allegedly provided web design tools and generated domain names to make scam sites look more legitimate and harder to track.
The scams, many run by criminal groups in Southeast Asia, typically use fake identities and elaborate stories to trick victims into trusting them. Once the money is invested, the scammers vanish.
In addition, US authorities said Funnull inserted malicious code into legitimate websites to redirect visitors to scam and illegal gambling sites, some linked to Chinese criminal money laundering.
The US Treasury’s Office of Foreign Assets Control (OFAC) has frozen all US assets connected to Funnull and Liu. US citizens are also prohibited from doing business with them.
“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,” Faulkender said.
The Federal Bureau of Investigation (FBI) is working closely with the Treasury on the case and has issued a cybersecurity advisory to help private companies identify and shut down related scam sites. Victims or witnesses to online scams are urged to report to the FBI’s Internet Crime Complaint Center (IC3).
