The US government on Thursday imposed sanctions on tools provided by Funnull Technology Inc. Funnull, making it easier for fraudulent networks to switch domains and avoid detection. Under sanctions, all US-based assets or profits related to Funnull or Liu are blocked.
On Thursday, the US government accused Funnull Technology Inc of supporting a widespread cryptocurrency fraud that has imposed sanctions on Funnull Technology Inc. and fraudulent US casualties of more than $200 million.
The Ministry of Finance’s Bureau of Foreign Assets Control (OFAC) said Funnull, based in the Philippines and operated by China’s National Liu Lizzy, provided critical infrastructure for so-called “pork shop” scams.
These schemes usually involve cybercriminals who cultivate romantic online relationships to tempt victims to invest in fraudulent cryptocurrency ventures.
The agency said Funnull “links to most of the crypto investment scam websites reported to the FBI.”
According to the Treasury, these frauds result in an average personal loss of over $150,000.
Authorities noted that actual losses could be significantly higher as many victims do not report crimes.
“Today’s actions are focused on disrupting criminal enterprises like Funnull, which enable these cyber fraud and allow Americans to steal their hard-earned savings,” said Michael Foulkender, deputy secretary of the Treasury Department.
Digital infrastructure for fraud
Funnull’s services include the sale of bulk purchase IP addresses and domain generation tools that allow scammers to quickly deploy new websites.
The company also offers web design templates that help you impersonate a trusted brand, the Treasury said.
These tools make it easier for fraudulent networks to switch domains and avoid detection.
“Funnull uses a domain generation algorithm to generate the domain name of your website with the purchased IP address,” the department said.
“These services not only make it easier for cybercriminals to trust a brand, but also allow lawful providers to quickly change to different domain names and IP addresses when they try to remove a website.”
In 2024, Funnull is said to have changed its developer code repository to redirect users from legitimate websites to scams and gambling sites. Some of them claim links to China’s money laundering network.
Sanctions and their impact
Liu Lizhi, identified as the administrator of Funnull, has also been approved.
According to the Treasury, Liu managed operations records, including documents tracking employee assignments and domain name usage for fraudulent fraud, phishing and online gambling.
Under sanctions, all US-based assets or profits related to Funnull or Liu are blocked.
US individuals and entities are prohibited from participating in transactions involving authorized parties unless expressly permitted by OFAC.
The FBI issued an alert on pig slaughter plans and reiterated that Funnull’s business supports thousands of fraudulent sites and continues to pose risk to American investors.
