U.S. Sanctions Philippines-Based Tech Firm for Enabling Crypto Pig Butchering Scams

The U.S. Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on Funnull Technology Inc., a Philippines-based company accused of providing infrastructure for hundreds of thousands of websites involved in pig butchering scams. These fraudulent schemes, which often target cryptocurrency investors, have reportedly caused over $200 million in losses, with individual victims losing an average of $150,000.

Liu Lizhi, a Chinese national serving as Funnull's administrator, was also sanctioned. Deputy Treasury Secretary Michael Faulkender emphasized the government's commitment to safeguarding the digital asset ecosystem, stating, "The United States is strongly committed to ensuring the continued growth of a legitimate, safe, and secure digital asset ecosystem."

Pig butchering scams involve long-term grooming of victims before pressuring them to invest large sums in fraudulent crypto ventures. The Treasury's action highlights growing regulatory scrutiny of crypto-related cybercrimes.