FBI and Treasury Target Funnull in $200M Pig Butchering Crypto Scam Crackdown

U.S. Authorities Crack Down on Pig Butchering Crypto Fraud Scheme

The FBI and U.S. Treasury Department have intensified efforts to combat a rising wave of crypto investment fraud known as “pig butchering” scams. These scams are named after the method used by fraudsters to “fatten up” victims with fake relationships and promises of high returns before stealing their funds. In this context, victims are groomed over weeks or months to trust fraudsters, who then guide them into transferring money into fake crypto trading platforms. Once the funds are moved, victims are locked out with no access to withdraw.

In 2024 alone, reported losses from such scams exceeded $9.3 billion in the United States. These cases often start on dating platforms or messaging apps where victims are manipulated into believing they’re speaking with a trustworthy individual. Fraudsters exploit emotional connections to lure victims into investing in fraudulent platforms that appear legitimate. The platforms often mimic real crypto exchanges and even allow for limited initial profits to gain more trust, before shutting off all access and disappearing with the funds.

In one of the most aggressive enforcement actions to date, the U.S. government sanctioned Funnull Technology Inc., a company based in the Philippines. According to federal authorities, Funnull provided backend infrastructure services to cybercriminal groups responsible for operating dozens of scam websites and investment platforms. Funnull allegedly bought and resold bulk internet protocol addresses, which scammers used to disguise their operations and run large-scale online fraud schemes.

Funnull and Foreign Operators Under Scrutiny for Crypto Fraud Infrastructure

Authorities have also named Liu Lizhi, a Chinese national and alleged administrator of Funnull, as a central figure in enabling these scams. The U.S. Treasury’s Office of Foreign Assets Control formally sanctioned both Lizhi and Funnull for providing critical services to fraud rings that specifically target American citizens. According to investigators, the digital infrastructure operated by Funnull played a key role in allowing cybercriminals to operate across multiple platforms undetected.

The crackdown is part of a broader effort by federal law enforcement and financial regulators to disrupt a growing network of international cyber fraud rings. The FBI’s Washington Field Office is now actively encouraging victims of these schemes to come forward and share evidence. Their goal is to map out the full scope of how pig butchering scams are organized, financed, and executed globally.

Beyond Funnull, investigators are also examining other shell companies and service providers that may have supported similar operations. Officials emphasize that the effort to identify and neutralize pig butchering rings is ongoing and involves coordination with international law enforcement agencies. The FBI has stated that it considers pig butchering to be one of the most damaging and fast-evolving forms of financial fraud currently affecting U.S. citizens.