While Americans struggle with inflation, the U.S. Treasury has finally cracked down on a $200 million cryptocurrency scam—after thousands already lost their life savings to foreign-run digital fraud.
At a Glance
- Treasury sanctioned Funnull Technology for enabling crypto scams that stole over $200 million
- Victims lost an average of $150,000 to “pig butchering” scams involving fake relationships and websites
- Funnull provided domains, IPs, and templates for scam sites linked to FBI reports
- Many scammers are human trafficking victims forced to work by Southeast Asian syndicates
- Cybersecurity experts say the action is overdue and only a first step
Foreign Shell Game: Scam Infrastructure Revealed
The U.S. Treasury’s sanctions against Funnull Technology expose a troubling reality: a foreign-run tech firm has been systematically enabling financial fraud against Americans. Operating out of the Philippines and run by Chinese national Liu Lizhi, Funnull sold core infrastructure—IP addresses, web templates, and domain registrations—used in a wave of cryptocurrency investment scams.
The schemes are collectively known as “pig butchering,” where criminals spend weeks or months building fake online relationships with victims before coaxing them into investing in bogus crypto platforms. Once the victims commit significant funds, the scammers disappear.
Watch more: Inside the $200M Crypto Scam.
Victims, on average, have lost a staggering $150,000, often their retirement savings or college funds. Despite the vast damage, the sanctions come long after Funnull’s network enabled the rise of hundreds of scam websites.
Human Trafficking Behind the Screens
Adding a darker twist, many of the people conducting the scams are human trafficking victims, forced by Southeast Asian crime syndicates to work in digital scam compounds under threat of violence. The syndicates exploit both the American victims and the people tricked into becoming tools of fraud.
Treasury Deputy Secretary Michael Faulkender noted the significance of the operation: “Today’s action underscores our focus on disrupting the criminal enterprises… that deprive Americans of their hard-earned savings.”
Experts say Funnull is connected to most of the cryptocurrency scam websites flagged by the FBI. Their involvement in the Polyfill supply chain attack last year shows how quickly this infrastructure morphed from simple fraud to broader cyber threats.
Why It Took So Long
Cybersecurity researchers had long been sounding alarms. Zach Edwards of Silent Push, who has tracked Funnull’s activities, said he’s “glad to see the facts aligned with our suspicions” but stressed this is only a beginning. “Doxing the companies they work with and the individuals who run those companies is an important first step,” he told TechCrunch.
Yet for many victims, that step is too late. The scams have already gutted life savings and wrecked futures. Treasury’s action, while necessary, feels like bureaucratic catch-up against a criminal enterprise that evolved faster than regulators could react.
A National Wake-Up Call?
The Funnull sanctions offer a grim reminder of how global cybercrime is evolving—and how little protection average Americans have against it. As inflation and economic pressure drive more people online in search of financial opportunity, they become prime targets for manipulative digital predators.
If the U.S. government hopes to protect consumers, it must act sooner, act smarter, and invest in global cybercrime prevention that doesn’t wait for the financial body count to climb past nine digits.
Otherwise, the next $200 million might be gone before anyone notices.
