Cybersecurity News: U.S. Sanctions Funnull Technology for Facilitating $200M Romance and Crypto Scams

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned Funnull Technology Inc., a digital infrastructure provider based in the Philippines, along with its administrator Liu Lizhi. The move comes after revelations that Funnull played a critical role in facilitating “romance baiting” scams, where victims are duped through fake online relationships into investing in fraudulent cryptocurrency schemes. These scams, also known as “pig butchering,” have collectively cost U.S. victims more than $200 million—often with individual losses exceeding $150,000.

Funnull allegedly supplied cybercriminals with the tools needed to build and operate vast scam networks. This included purchasing IP addresses in bulk from cloud giants like Amazon Web Services and Microsoft Azure, then reselling them to criminal actors who hosted deceptive websites. The company also employed domain generation algorithms to rapidly spin up new sites and provided slick web templates to give these sites a veneer of legitimacy. Funnull's software and program offerings enabled cybercriminals to automate and scale their scam operations, making it easier to manage large numbers of fraudulent sites and coordinate attacks.

Broader Implications and Connections

Beyond romance scams, Funnull was implicated in the supply chain attack involving the Polyfill.io JavaScript library. This compromise redirected users from legitimate websites to scam and gambling sites, some linked to Chinese criminal money laundering groups. Key components of Funnull's infrastructure—such as its distributed server network, malicious code injection mechanisms, and automated redirection systems—enabled the large-scale redirection and scam operations. The FBI traced more than 332,000 unique domains back to Funnull since January 2025, highlighting the industrial scale of its operations.

Government Response and Sanctions

To counter these threats, OFAC froze Funnull’s U.S.-based assets and prohibited American entities from engaging with the company or its administrator. This action carries significant legal and regulatory implications for businesses operating internationally, as failure to comply with such sanctions can result in severe penalties and violations of both U.S. laws and global regulations. This action is a strategic effort to dismantle the infrastructure underpinning these scams and protect vulnerable individuals from online exploitation.

What Are Romance Scams and Why Businesses Should Care

Romance scams are emotionally manipulative cybercrimes where attackers pose as love interests to build trust with victims. Once that trust is established, the scammer persuades the victim to send money or invest in seemingly legitimate ventures—often involving cryptocurrency. While these scams may appear to target individuals personally, their effects can easily spill over into the business world.

An employee caught in such a scam might unknowingly compromise corporate systems by accessing work accounts from compromised devices, clicking malicious links, or even introducing attackers to internal communication platforms. These personal-to-professional threat bridges are increasingly common and particularly dangerous, as they bypass many traditional enterprise security controls.

Businesses must therefore recognize that threats outside the office can lead directly to breaches within. That’s why awareness and vigilance across all aspects of employee life—not just on the work computer—are critical for organizational security. In addition, having clear procedures, well-defined responsibilities, and supporting documents is essential to guide employees in responding effectively to potential romance scam threats.

Hear the Dangers of Romance Scams - Through Song

Want to understand just how dangerous these romance scams can be? Listen to our latest security awareness and training song (player above - below the image) about the perils of digital romance. It’s a humorous take on a serious issue, perfect for sparking awareness.

If you enjoy this kind of creative approach to learning, you’ll love what’s coming next. Our new iO™ ClickSafe Academy platform offers engaging, interactive security awareness training that goes beyond traditional lessons. Contact us today to find out how your team can benefit from memorable, effective cybersecurity education.

Why Security Awareness Training Matters More Than Ever

The reality is, your employees are your first line of defense against cyber threats. No matter how robust your technology stack is, one click on a convincing scam can unravel your defenses. That’s why ongoing education and reinforcement are critical.

iO™ ClickSafe Academy was created to meet this need head-on. Creating effective security awareness training involves careful planning and development to address real-world threats, and its successful implementation is essential for lasting impact. Our training is implemented across organizations through structured rollout processes, ensuring ongoing employee engagement and continuous improvement. We provide practical training that’s not only quick and easy to digest, but also enjoyable - yes, really. Our platform includes awareness modules and real-world tests for phishing (email-based attacks), smishing (text-based phishing attacks), vishing (phone-based phishing and social engineering attacks), and even quishing (QR code phishing), all designed to keep teams sharp and security top-of-mind.

It’s about more than compliance, it’s about culture. We built iO™ ClickSafe Academy because we knew there had to be a better way to make cybersecurity training stick, and now it’s available to help your organization stay alert, aware, and resilient.

Ready to Protect Your Team and Make Training Enjoyable?

If you're ready to get serious about defending your organization from scams like these and many others, we’re here to help. Reach out to learn how iO™ ClickSafe Academy can empower your employees to spot threats before they become breaches, all while making security training a lot less dull.

With engaging content, real-world testing, and a focus on practical application, iO™ ClickSafe Academy is cybersecurity education that actually sticks. Let’s make your team smarter, safer, and yes, maybe even a little entertained.

Schedule a Call to Discuss Improving Your Security Awareness and Training Program

Looking Ahead: Being Proactive with Security and Technology

The landscape of security and technology is in constant flux, with new threats and innovations emerging at a rapid pace. To stay ahead, organizations must adopt proactive strategies, leveraging expert insights and keeping a close eye on industry trends. Implementing a comprehensive information security policy is essential for protecting sensitive information and preventing security incidents.

Regular security audits and risk assessments help organizations identify potential vulnerabilities and develop effective mitigation strategies. By prioritizing the protection of information assets, businesses can ensure the confidentiality, integrity, and availability of their sensitive data even as the threat landscape evolves.

Staying informed and adaptable is key. By embracing new technologies, updating security practices, and fostering a culture of vigilance, organizations can not only meet regulatory requirements but also build resilience against future cyber attacks. The future of security belongs to those who are prepared, proactive, and committed to safeguarding their data and operations.