OFAC Sanctions Philippines-Based Tech Company For Facilitating Pig Butchering Schemes
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has levied sanctions against Funnull Technology Inc., a Philippines-based technology company, and its administrator, Chinese national Liu Lizhi. This action, announced in a Thursday press release, targets the company’s role in facilitating widespread pig butchering scams.
Pig butchering scams are sophisticated cryptocurrency investment frauds. Victims are groomed over extended periods, often through romantic relationships initiated via unsolicited contact, before being defrauded of substantial sums. These schemes, primarily orchestrated by Southeast Asian criminal organizations, often exploit victims of labor trafficking.
Funnull Technology’s infrastructure, according to OFAC, supports hundreds of thousands of websites involved in these scams. The company provides bulk-purchased IP addresses from global cloud service providers, enabling the creation of fraudulent websites that mimic legitimate investment platforms. This deception facilitates the transfer of victims’ funds.
Liu Lizhi’s role involved managing Funnull’s operations, including assigning domain names to cybercriminals for various illicit activities, such as virtual currency investment fraud, phishing, and online gambling. OFAC’s press release cites internal company documents detailing employee performance and tasks directly related to these fraudulent activities.
The sanctions, placing Funnull Technology and Liu Lizhi on the Specially Designated Nationals (SDN) list, prohibit all U.S. persons from engaging in any transactions with them. This action aims to disrupt the criminal enterprise and protect American citizens from significant financial losses. The average loss per victim in the scams facilitated by Funnull Technology exceeds $150,000, with total losses exceeding $200 million.
Deputy Secretary of the Treasury Michael Faulkender emphasized the U.S. commitment to fostering a secure digital asset ecosystem, highlighting this action as a crucial step in combating cybercrime and protecting the integrity of the virtual currency space. The sanctions underscore the ongoing efforts to combat transnational organized crime and protect individuals from these devastating financial scams.
