The United States has launched a major strike against a key enabler of global cryptocurrency fraud. Following this, the Treasury Department sanctioned Funnull Technology Inc., a Philippines-based company, yesterday. Authorities also targeted its Chinese administrator, Liu Lizhi. They stand accused of powering thousands of devastating crypto scam websites. Victims have already lost more than $200 million. The Treasury’s Office of Foreign Assets Control (OFAC) made the announcement. Funnull allegedly provides essential infrastructure for cybercriminals. Shockingly, it connects directly to most scam sites reported to the FBI.
Funnull’s Fraud Factory
OFAC detailed Funnull’s dangerous business model. First, the firm buys huge blocks of IP addresses from cloud providers. Then, it resells these addresses to scammers. Criminals use them to host fake investment platforms. These clones perfectly mimic legitimate crypto exchanges. This is followed by unsuspecting victims get tricked into sending funds. The criminals simply steal their cryptocurrency. Furthermore, Funnull employed even more aggressive tactics. In 2024, it purchased a popular code repository used by developers. OFAC states Funnull altered this critical code maliciously. Subsequently, it redirected visitors from real websites to fraudulent ones. Many landed on scam sites or illegal online gambling platforms.
Making Scams Harder to Stop
These services offer criminals dangerous advantages, OFAC emphasised. They effortlessly impersonate trusted brands using scam websites. Moreover, they evade shutdown attempts rapidly. Legitimate providers try blocking fraudulent domains. However, criminals quickly shift to new addresses. Funnull’s infrastructure enables this constant evasion.
Sanctioning the Mastermind
The sanctions specifically name Liu Lizhi as Funnull’s administrator. He is a Chinese national managing the firm’s operations. Therefore, OFAC added Liu to its Specially Designated Nationals list. This freezes any US assets he possesses. Additionally, Americans face severe penalties for dealing with him. Simultaneously, OFAC sanctioned two cryptocurrency wallets linked to Funnull. Blockchain firm Chainalysis identified these addresses. They likely received payments directly from cybercriminals. Chainalysis also noted indirect exposure to diverse scams. The wallets connected to domain management infrastructure vendors too.
Part of a Vast Criminal Network
Evidence points to Funnull’s central role in a massive criminal ecosystem. Chainalysis links it firmly to the “Triad Nexus.” This sprawling network involves over 200,000 unique scam hostnames. It promotes fake investment opportunities and fraudulent trading apps globally. Funnull acted as a critical technical backbone.
Consequences of the Sanctions
These sanctions carry significant legal weight across America. Everyone within US jurisdiction must comply immediately. They cannot transact with any property interests of Funnull or Liu Lizhi. This applies wherever they hold over a 50% stake. Violators risk facing serious civil or criminal penalties. The Treasury Department aims to dismantle Funnull’s operations completely. Protecting citizens from these predatory scams is paramount. Meanwhile, the staggering $200 million victim loss highlights the scheme’s brutality. Officials urge continued vigilance against sophisticated crypto frauds.
Written By Fazal Ul Vahab C H
