FBI, Treasury Launch Crackdown on Funull in $200M Cryptocurrency "Pig Butchering" Fraud Investigation
U.S. Escalates Crackdown on "Pig Butchering" Crypto Fraud with Sanctions Against Funnull Technology and Liu Lizhi
The Federal Bureau of Investigation (FBI) and the U.S. Treasury Department have stepped up their efforts to combat a surge of cryptocurrency investment fraud, infamously known as "pig butchering" scams. These scams involve con artists luring victims into fake cryptocurrency trading platforms by means of emotional manipulation and false promises of high returns on investments.
In the least half of 2024 alone, reported losses due to such scams eclipsed $9.3 billion in the United States. Typically, these scams initiate on dating platforms or messaging apps, where vulnerable individuals are manipulated into establishing trust with fraudsters. The fraudsters capitalize on the human connection to entice victims into investing in deceptive platforms that mimic genuine cryptocurrency exchanges. Attracting initial profits to foster trust, these fraudulent platforms later block all access and vanish with the funds.
In an illustrative example of enforcement actions, the U.S. government imposed sanctions on Funnull Technology Inc., a company based in the Philippines. Federal authorities allege that Funnull provided backend infrastructure services to cybercriminal groups responsible for operating dozens of deceptive websites and investment platforms. The company purportedly leased and resold bulk internet protocol addresses, which scammers utilized to conceal their nefarious activities and run large-scale online fraud schemes.
Key to these schemes is Liu Lizhi, a Chinese national and, reportedly, Funnull's administrator. The U.S. Treasury's Office of Foreign Assets Control (OFAC) has officially sanctioned both Lizhi and Funnull for their supportive role in enabling these scams. OFAC claims that the digital infrastructure managed by Funnull was instrumental in enabling cybercriminals to persistently evade detection across multiple platforms.
The crackdown represents part of a broader initiative by federal law enforcement and financial regulators to dismantle a burgeoning network of international cyber fraud rings. The FBI's Washington Field Office is urging victims of these scams to come forward and submit evidence. Their objective is to map out the complex organizational structure, funding sources, and executional strategies behind global pig butchering operations.
Investigators are also examining other shell companies and service providers possibly implicated in similar activities. Officials stress that the endeavor to identify and neutralize pig butchering rings remains ongoing and necessitates international cooperation among law enforcement agencies. The FBI considers pig butchering as one of the most detrimental and swiftly evolving forms of financial fraud currently endangering U.S. citizens.
- The escalating cybsersecurity concern of pig butchering crypto fraud includes scams operating on deceptive platforms that mimic legitimate crypto exchanges, as seen in the case of Funnull Technology Inc.
- The U.S. government's sanctions extend to Liu Lizhi, a Chinese national alleged to be the administrator of Funnull, for enabling these fraudulent activities.
- Traders should be wary of fraud as investigations continue, exposing other shell companies and service providers possibly involved in pig butchering scams.
- In light of the growing threat of pig butchering, there is an urgent call for cooperation among global law enforcement agencies to dismantle the network of criminal operations.
- The general-news and finance sectors should closely monitor developments in cryptocurrency mining and trading due to the ongoing challenge crypto exchanges face in combating this evolving form of organized financial crime.
