The U.S. Treasury has intensified its crackdown on crypto-fueled fraud, imposing sanctions on Funnull Technology Inc., a tech company based in the Philippines, and its administrator Liu Lizhi. According to the Treasury’s Office of Foreign Assets Control (OFAC), Funnull played a central role in enabling more than $200 million in fraudulent crypto activity, targeting thousands of U.S. citizens through a sprawling network of deceptive websites.

Funnull is accused of providing critical infrastructure to criminal syndicates behind “pig butchering” scams—a manipulative scheme that combines social engineering with digital theft. OFAC investigators allege that Funnull purchased IP addresses in bulk from cloud service providers and repurposed them to create phishing domains, fake investment portals, and illicit gambling websites.

According to the Treasury, Liu Lizhi not only oversaw these operations but also maintained detailed internal logs assigning employees to the deployment and maintenance of scam-related infrastructure. This coordination allowed cybercriminals to launch sophisticated fraud schdented reach.

“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,” — Deputy Treasury Secretary Michael Faulkender

How Pig Butchering Scams Work—and Why They’re Spreading Fast

The sanctions come amid rising concern over the rapid proliferation of pig butchering scams—so named after the method of slowly “fattening up” a target before the final blow. These scams often begin with innocuous conversations on dating apps or social media platforms, where scammers gradually build emotional trust with victims.

Once a bond is formed, the fraudster introduces the idea of a lucrative crypto investment opportunity. Victims are either persuaded to transfer funds directly or connect their wallets to fake platforms that mimic legitimate exchanges. The result: total asset loss.

OFAC officials say Funnull’s infrastructure was instrumental in launching and maintaining hundreds of these fake platforms, enabling scammers to impersonate financial professionals and hide their tracks with ease.

The Treasury’s action freezes all U.S.-based assets tied to Funnull and Liu, while also barring any American individuals or entities from doing business with them or any company they own 50% or more of. Officials describe it as a critical step in dismantling the “digital scaffolding” behind modern cyber fraud.

Treasury Expands Global Crackdown on Crypto Cybercrime

The sanctions against Funnull reflect a broader U.S. strategy aimed at eroding the infrastructure behind crypto-enabled financial crime. The Treasury, through OFAC, has increasingly focused on actors operating in the shadows—not just the fraudsters, but the engineers, administrators, and facilitators who build the systems these schemes depend on.

In the past year, OFAC has issued sanctions against a growing list of such entities:

• In October, the agency sanctioned Evil Corp, a Russian cybercriminal group responsible for ransomware campaigns and financial theft.
• In March, it blacklisted Behrouz Parsarad, who operated the dark web marketplace Nemesis, known for facilitating narcotics and illicit goods trade.
• In April, the Treasury targeted crypto wallets associated with Iran-backed Houthi rebels, accusing them of using Tron-based assets to fund militant activities.

These actions mark a growing willingness to pursue infrastructure providers alongside direct perpetrators, signaling that the U.S. is no longer tolerating the “platform layer” of global crypto crime networks.

Quick Facts

• The U.S. Treasury sanctioned Funnull Technology Inc. and administrator Liu Lizhi for enabling over $200M in crypto scams targeting Americans.
• Funnull allegedly supported “pig butchering” scams by providing infrastructure for fake crypto platforms.
• Sanctions include asset freezes and a ban on U.S. entities doing business with the firm or Liu.
• The move is part of a wider OFAC campaign against global crypto-related cybercrime infrastructure.