In a significant move aimed at curbing crypto-related fraud, the United States Treasury has imposed sanctions on Funnull Technology, a tech company based in the Philippines, accusing it of playing a pivotal role in enabling large-scale online scams targeting cryptocurrency investors.
According to a May 29 announcement by the Office of Foreign Assets Control (OFAC), Funnull is tied to a vast network of fraudulent websites that collectively caused over $200 million in losses to unsuspecting victims. The firm’s alleged involvement includes supplying digital infrastructure to cybercriminals, enabling them to mimic legitimate investment platforms with the intent of stealing cryptocurrency.
Exploiting Infrastructure for Deception
At the heart of the accusations lies Funnull’s business of acquiring bulk IP addresses from cloud service providers and then distributing them to scam operators. This allows fraudsters to build convincing replicas of authentic financial websites and apps, duping users into surrendering their crypto holdings.
What makes the situation more alarming is a case from 2024, where Funnull reportedly purchased a software code repository commonly used by web developers, subtly modified it, and caused visitors of otherwise legitimate websites to be redirected to scam domains and even online gambling portals. This tactic effectively turned genuine web traffic into a goldmine for scammers without the knowledge of the users or even the site owners.
OFAC’s statement emphasized that these services have empowered fraudsters to not only imitate well-known brands with shocking accuracy but also to rapidly switch IPs and domain names — making it exceedingly difficult for law enforcement and security firms to shut them down.
Individuals and Wallets Now Blacklisted
Along with sanctioning the company, OFAC also named Liu Lizhi, a Chinese national alleged to be Funnull’s administrator, placing him on the Specially Designated Nationals and Blocked Persons (SDN) list. This designation effectively bars Lizhi and Funnull from any business interactions involving U.S. entities or persons, and mandates that any assets they hold within U.S. jurisdiction be frozen. Those who knowingly interact with SDN-listed individuals or companies could face serious civil or criminal consequences.
In addition, two cryptocurrency wallet addresses linked to Funnull were also sanctioned. A report released the same day by blockchain intelligence firm Chainalysis suggests these wallets were likely used to collect payments from cybercriminal clients. They also appear to be indirectly connected to other scam operations and domain infrastructure providers, according to the Chainalysis analysis.
A Web of Fraud: The “Triad Nexus”
Chainalysis went further by stating that Funnull is a central cog in a wider fraudulent network dubbed the “Triad Nexus.” This sprawling network reportedly includes over 200,000 unique hostnames, many of which are used to host fake trading apps, investment scam platforms, and deceptive crypto services. This revelation paints a picture of a highly coordinated digital fraud ecosystem, with Funnull providing the foundational tech to keep it all running.
What This Means Moving Forward
The sanctions mark a firm stance by the U.S. government against the technological enablers of crypto scams — not just the scammers themselves. It reflects a growing awareness of the infrastructure players that quietly support fraud rings from behind the scenes, whether through cloud IP provisioning, software manipulation, or server routing.
As the crypto industry matures, regulatory bodies like OFAC are extending their oversight beyond the financial end of scams to include the digital tools and services that make them possible in the first place. While sanctions may not immediately dismantle such networks, they significantly increase the cost of doing business for the bad actors involved.
For U.S. firms, individuals, and exchanges, the message is clear: avoid any interaction with Funnull Technology or its affiliates, or risk facing penalties of your own.
