🇺🇸🚫US Treasury sanctions crypto tech firm linked to $200M in scam losses

The U.S. Treasury has officially sanctioned Funnull Technology, accusing the firm of enabling large-scale crypto fraud through its infrastructure. According to the OFAC report, Funnull provided digital services—primarily IP hosting and domain rotation—for dozens of crypto scam sites that operated “pig butchering” schemes across the U.S., defrauding victims of over $200 million.

These operations used AI-generated personas, romantic engagement tactics, and false trading apps to lure targets into fake investment platforms. When victims attempted withdrawals, the funds were blocked, and communication cut. The FBI identified Funnull as the most frequently linked backend provider in crypto scam site investigations over the past two years.

Treasury documents reveal that Funnull actively purchased IP address blocks from top cloud providers like AWS, Azure, and Google Cloud, then redistributed them to scammers, masking the true hosting source. Additionally, Funnull deployed DGA (Domain Generation Algorithms) to auto-generate new scam domains after previous ones were blacklisted, severely complicating takedown efforts.

The sanctions freeze all U.S.-linked assets of the company and its administrator, Liu Lizhi, while banning U.S. entities from doing business with them. Treasury also hinted at upcoming actions targeting infrastructure enablers in similar fraud ecosystems.

For the crypto sector, the case marks a turning point: the U.S. is expanding regulatory pressure from token issuers to infrastructure players. The question now isn’t just who issued the scam token — but who kept it online.

Should hosting providers be held accountable when their services fuel crypto fraud?#AMAGE