Crypto Scam Infrastructure Provider Sanctioned by U.S. Government

A tech company based in the Philippines is under U.S. sanctions after being accused of helping operate thousands of fraudulent crypto websites. The move underscores the growing crackdown on international cybercrime targeting digital assets.

Funnull Technology Implicated in $200 Million Crypto Scam Scheme

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Funnull Technology and its alleged administrator Liu Lizhi on May 29. According to OFAC, the firm played a pivotal role in a vast network of crypto scam operations responsible for over $200 million in reported losses.

Funnull reportedly acquired large volumes of IP addresses from cloud service providers and resold them to cybercriminals. Scammers then used these resources to build deceptive copies of legitimate investment platforms and lure victims into revealing their crypto wallet information.

In a particularly concerning incident in 2024, Funnull allegedly bought a popular code repository used by web developers and tampered with it—redirecting unsuspecting users to fraudulent crypto and gambling websites.

“These services not only make it easier for cybercriminals to impersonate trusted brands,” OFAC stated, “but also enable them to quickly shift operations when legitimate providers attempt takedowns.”

Administrator and Crypto Wallets Face Sanctions

OFAC also targeted Liu Lizhi, a Chinese national accused of managing Funnull’s employees, by adding him to its Specially Designated Nationals and Blocked Persons (SDN) list. This designation freezes any of his assets within the U.S. and prohibits Americans from doing business with him.

Additionally, OFAC sanctioned two crypto wallet addresses allegedly linked to Funnull. Blockchain analytics firm Chainalysis reported that these wallets were likely used to accept payments from cybercriminals. The addresses also exhibited indirect connections to scams and infrastructure used for domain management.

Chainalysis identified Funnull as a central figure in what it calls the “Triad Nexus,” a web of over 200,000 scam-linked hostnames that promote fake trading apps and bogus investment platforms.

Due to the sanctions, all U.S. individuals and businesses are now legally barred from engaging with Funnull or Lizhi if they hold a controlling interest in any asset or operation. Violators could face serious civil or criminal penalties.