Major: US Sanctions Philippines Tech Firm Over Shocking Crypto Scams Aid
The fight against illicit activity in the cryptocurrency space just saw a significant move. The US government has taken action, imposing US sanctions on a Philippines tech firm accused of being a major facilitator of crypto scams globally. This development highlights the increasing focus by authorities on cracking down on the infrastructure that enables financial crime within the digital asset ecosystem.
Why Did OFAC Target This Philippines Tech Firm?
The US Treasury’s Office of Foreign Assets Control (OFAC) announced on May 29th that it has sanctioned Funnull Technology, a firm based in the Philippines, along with its alleged administrator. According to OFAC, Funnull is linked to a vast number of crypto scam websites reported to the FBI, with victims reportedly losing over $200 million.
OFAC detailed several allegations against Funnull Technology:
- Purchasing IP addresses in bulk from cloud providers and selling them to scammers.
- Enabling scammers to host cloned websites of legitimate investment platforms.
- Altering code repositories used by web developers to redirect visitors from legitimate sites to scam or gambling sites.
These actions, OFAC states, make it easier for cybercriminals to impersonate trusted brands and quickly change their digital footprint to evade detection and takedown attempts by legitimate service providers.
Understanding the Impact of US Sanctions
The administrator of Funnull Technology, Liu Lizhi, a Chinese national, was also added to OFAC’s Specially Designated Nationals and Blocked Persons (SDN) list. Being placed on the SDN list has serious consequences:
- Any assets the individual or entity has within US jurisdiction are frozen.
- US persons and entities are prohibited from conducting financial transactions or business dealings with those on the list.
- Violations can result in civil and criminal penalties.
Furthermore, OFAC sanctioned two crypto wallet addresses identified as being associated with Funnull Technology. Blockchain analytics firm Chainalysis reported these addresses were likely used to receive payments from cybercriminals and show connections to various scam types and domain management infrastructure.
Funnull Technology and the Triad Nexus
Chainalysis provided additional context, claiming that Funnull Technology is a central component of a larger network known as the Triad Nexus. This network reportedly encompasses over 200,000 unique hostnames associated with investment scams and fake trading applications. This suggests the sanctions target a key piece of infrastructure supporting a widespread network of crypto scams.
As a direct result of these US sanctions, all property and business interests in which Liu Lizhi or Funnull Technology hold a stake of 50% or more are now blocked for anyone in the United States. This action against a Philippines tech firm underscores the commitment of US authorities to pursue entities globally that facilitate financial crimes impacting US victims, regardless of their location.
Conclusion: A Warning to Scam Facilitators
The sanctioning of Funnull Technology and its administrator by OFAC sends a clear message: providing services that enable crypto scams will not be tolerated by US authorities. This action targeting a Philippines tech firm demonstrates the expanding reach of US sanctions against infrastructure providers that support global cybercrime and financial fraud. It highlights the ongoing challenge of combating sophisticated scam operations and the importance of international cooperation and regulatory action.
