US Treasury Sanctions Philippines-Based Company Linked to Crypto Scams
The U.S. Treasury has imposed sanctions on Funnull Technology, a Philippines-based company accused of providing internet infrastructure to various virtual currency investment scams, commonly known as ‘pig butchering.’
In a statement released on Thursday, Treasury officials said they were taking action against Funnull Technology Inc., which allegedly purchased internet protocol addresses in bulk from other service providers and resold them to cybercriminals. An alleged administrator of Funnull, Chinese citizen Liu Lizhi, was also sanctioned.
Virtual currency investment scams, which typically deceive people into investing in fraudulent cryptocurrency schemes, have evolved into a billion-dollar industry driven by organized crime and fueled by human trafficking. These scams often rely on bogus websites to swindle victims. Earlier this year, researchers from cybersecurity firm Silent Push linked Funnull to a network of such sites, along with thousands of others suspected of being involved in gambling or money laundering.
Pig butchering scams, originating from China, now target people worldwide. Blockchain analytics firm Chainalysis reported that revenues from these scams have reached a record high, likely boosted by the use of generative algorithms that help scammers tailor their pitches and engage with more people simultaneously.
