The US Department of the Treasury has taken action against a Philippines-based technology company, Funnull Technology Inc., for its role in supporting pig butchering scams by providing essential computer infrastructure for hundreds of thousands of scam websites. According to the Treasury's Office of Foreign Asset Control, this has resulted in over $200 million in losses for US victims, with individual losses averaging more than $150,000. The move is part of a broader effort to disrupt and dismantle criminal organizations that facilitate these types of cyber scams. Deputy Secretary of the Treasury Michael Faulkender emphasized the importance of protecting Americans' financial security and promoting a safe digital asset ecosystem.
Pig butchering schemes involve deceiving victims over time, often through romantic or investment scams, before convincing them to invest large sums in fraudulent crypto investments. The Treasury has also sanctioned Liu Lizhi, a Chinese national and administrator at Funnull Technology, for his alleged involvement in the company's illicit activities.
The sanctions bar US persons from engaging in any transactions with Funnull Technology and Liu.