Crypto Scam Network Exposed: Why a Philippine Firm’s Sanction is Shaking the Blockchain World
The cryptocurrency world is once again rocked by cybercrime news: a major crackdown has hit one of the largest infrastructures supporting online crypto scams globally. In a decisive move, the US government has sanctioned Funnull Technology Inc., a technology provider in the Philippines accused of powering widespread fraud operations targeting crypto investors worldwide.
Crypto scams remain a persistent threat in decentralized finance (DeFi) and beyond. The US Treasury Department, alongside the FBI, is targeting Funnull’s digital network, which is allegedly behind hundreds of thousands of phishing and scam sites—many tied to sophisticated “pig butchering” operations. These social engineering schemes manipulate victims through false romantic or financial promises into fraudulent crypto investments, with losses topping $200 million and individual losses reaching more than $150,000 in the US alone. According to cybersecurity veterans, such scams increasingly use technical tricks like domain generation algorithms and bulk-purchased IP addresses to evade detection.
Funnull’s network, under the direction of its administrator Liu Lizhi, reportedly enabled mass site creation and provided templates designed to impersonate legitimate crypto platforms. Experts in blockchain security warn that template-based fraud has rapidly evolved, making it harder for both users and regulators to differentiate between legitimate and fake crypto trading environments. Keeping your crypto assets secure is now more important than ever—consider reading our guide on the best crypto wallet options for maximum safety.
The US sanctions—enforced under executive orders aimed at disrupting cybercriminals’ financial flows—are part of a broader trend of increased regulatory scrutiny around crypto and Web3. The FBI is releasing new guidance for internet infrastructure providers, signaling that even platforms serving as technical enablers for fraud can become targets for law enforcement.
Recent reports highlight that in 2024, Funnull allegedly tampered with widely-used software code repositories, redirecting traffic from trusted sites to illegal gambling and scam platforms, some of which may be linked to transnational money laundering rings. Blockchain analytics professionals note that many such operations leverage both cutting-edge and traditional cybercrime tactics, often exploiting labor trafficking victims in Southeast Asia to facilitate these schemes. If you’re new to digital assets, make sure you’re protected—explore our tutorial on crypto trading for beginners and how to avoid scams.
The recent crackdown mirrors a pattern of government actions aiming to combat the ongoing crisis of crypto-related social engineering scams. Market analysts say that, while new regulatory moves make it riskier for fraudsters, coordinated international approaches will be needed as crypto networks and scams become increasingly sophisticated. For continued updates and expert analysis, check the latest crypto regulations and crackdown efforts worldwide.
For crypto investors, the key takeaway is vigilance. As cryptocurrency adoption grows, so does the need for robust security, informed investing, and awareness of evolving threats.