US Targets Philippine-Based Tech Firm Tied to Crypto Romance Scams

The United States has imposed sanctions on a company based in the Philippines called Funnull Technology Inc., accusing it of supporting online crypto scams. According to the US Department of State, the company is run by a Chinese national named Liu Lizhi, who is also included in the sanctions.

Funnull Technology is allegedly involved in providing the technical backbone for online investment fraud schemes. These scams typically take place on social media platforms or dating apps, where scammers create fake profiles and build online relationships with unsuspecting victims. Once trust is established, they convince the victims to invest in fake cryptocurrency schemes.

This type of fraud is known as "pig butchering", a term that describes how scammers “fatten up” their targets with affection or friendship before financially draining them. The US Department of the Treasury said Funnull helped enable these scams by purchasing internet protocol (IP) addresses in bulk and reselling them to cybercriminals.

Efforts to contact Liu or the company have so far failed. Reports say Liu is 40 years old and linked to addresses in Shanghai and Ganzhou. Attempts to find Funnull in the Philippines’ business registry were also unsuccessful.

These crypto scams are now part of a billion-dollar industry and are often linked to organized crime. Cybersecurity researchers from Silent Push previously traced Funnull to a network of fake websites believed to be used for gambling, money laundering, and fraudulent investments.

The US move reflects growing concern over how these tech infrastructure providers are enabling global online scams, many of which have also been compared to illegal POGO operations that have already been banned in the Philippines.

(via US Department of the Treasury)