The U.S. Treasury Department has imposed sanctions on Philippines-based tech company Funnull Technology for allegedly aiding and abetting thousands of crypto scam websites, leading to over $200 million in reported losses.
Funnull Accused of Powering Crypto Scam Infrastructure
According to a statement released by the Office of Foreign Assets Control (OFAC) on May 29, 2025, Funnull Technology is linked to a majority of scam websites reported to the FBI in recent years.
“Funnull purchases IP addresses in bulk and resells them to scammers to clone legitimate investment platforms,” OFAC said.
The company allegedly enabled cybercriminals to easily impersonate trusted brands, create fake websites, and quickly change domain names and IP addresses when their scam operations were detected.
Altered Web Development Code for Redirection
In one documented case in 2024, Funnull purchased a public code repository used by many web developers, then altered the code to redirect website visitors to scam or online gambling sites.
“These services helped scammers hijack traffic from real websites to fraudulent ones,” OFAC stated.
Administrator Liu Lizhi and Crypto Wallets Sanctioned
Funnull’s administrator, Liu Lizhi, a Chinese national, has also been added to the Specially Designated Nationals (SDN) list, which:
- Freezes all of his U.S. assets
- Bans all U.S. persons from conducting business with him
- Carries potential civil and criminal penalties for violations
OFAC also sanctioned two crypto wallet addresses tied to Funnull. According to Chainalysis, these wallets were used to receive payments from cybercriminals and have indirect links to various scam operations.
Part of a Global Scam Network
Blockchain analytics firm Chainalysis identified Funnull as a key player in the “Triad Nexus,” a widespread scam network responsible for:
- Over 200,000 fake domains
- Numerous investment and fake trading app scams
“Funnull’s infrastructure is critical to how online scams scale rapidly,” Chainalysis added.
What This Means for Crypto Security
These sanctions underscore a shift in U.S. efforts to combat crypto fraud by targeting enabling infrastructure, not just the scam operators.
“No U.S. person may now legally interact with Funnull or Liu Lizhi,” OFAC confirmed.
As scams evolve, so too must enforcement — and targeting the backend infrastructure is now a central part of that effort.