US Imposes Sanctions on Funull, Philippine Tech Company Linked to Global Cryptocurrency Frauds
U.S. Imposes Sanctions on Tech Firm and Administrator Over Cyber Scam Involvement
The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has taken action against Funull Technology Inc., a tech firm based in the Philippines, and its administrator Liu Luzhi. The sanctions are part of ongoing efforts to combat cyber scams, particularly those involving virtual currencies.
Funull Technology Inc. is reportedly linked to a notorious "pig butchering" scam operation. These scams involve building trust with victims over time before persuading them to invest large sums into fraudulent cryptocurrency platforms, which eventually drain victims' funds. Liu Luzhi has been identified as an administrator or key figure behind Funull, orchestrating these scams that target victims globally.
The scheme is characterized by manipulation via social media and messaging apps, where victims are "fattened" with fake profits then "butchered" when encouraged to invest large amounts. Funull is alleged to have played a key role in enabling these scams, contributing to more than $200 million in reported losses from U.S. victims.
Funull is accused of supplying the backend infrastructure for a network of fraudulent cryptocurrency investment websites. The company reportedly uses domain generation algorithms (DGAs) to create domain names for these websites, purchasing large quantities of IP addresses from major cloud service providers around the world and selling them to cyber criminals. These IP addresses were used to host fraudulent investment platforms and other harmful online content.
Liu Luzhi had access to internal documents of Funull, including staff performance metrics and task progress. Among his tasks was assigning domain names to cyber criminal groups, some of which were linked to virtual currency investment fraud, phishing schemes, and illicit online gambling platforms.
As a result of these activities, Funull and Luzhi have been placed on OFAC's Specially Designated Nationals and Blocked Persons (SDN) list. The sanctions imposed on Funull and Luzhi prohibit all individuals and entities in the United States from engaging with any property or business interests in which they hold more than a 50 percent ownership.
The sanctions come as cyber scams continue to pose a significant threat, with American victims losing billions of dollars each year. In 2024, illicit revenue from these schemes reached a record high, underscoring the need for continued vigilance and enforcement actions against such activities. Funull's alleged use of domain generation algorithms (DGAs) to create domain names for websites continues to be a concern in the fight against cyber scams.
The U.S. Treasury Department's action against Funull Technology Inc. and Liu Luzhi includes sanctions on a tech firm that allegedly used domain generation algorithms (DGAs) to aid in the operation of fraudulent cryptocurrency investment websites, often associated with general-news categories such as crime-and-justice. Liu Luzhi, identified as an administrator or key figure behind Funull, is accused of manipulating victims globally, often through social media and messaging apps, involving technology and contributing to significant financial losses, dropping the value of general-news stories about cyber scams from virtual currencies to the magazine stand.
