U.S. Sanctions Tech Firm Funnull Over Role in AI-Enabled Cyber Scams

The U.S. Department of the Treasury has sanctioned Philippines-based tech company Funnull and its Chinese operator Liu Lizhi for facilitating large-scale cyber scams. The Office of Foreign Assets Control (OFAC) announced that Funnull tied to a majority of crypto investment scam websites reported to the FBI. In which, individual victims suffering average losses of $150,000. However, officials caution that the total impact is likely underreported. 

Funnull allegedly supported cybercriminal networks by providing domain generation services, hosting scam websites on owned IP addresses. It also designs web templates that mimic legitimate financial platforms. These services enabled scammers to swiftly rotate domain names, evade takedown efforts, and impersonate trusted brands. The AI capabilities underpinning these scams have made them increasingly scalable and deceptive. 

The sanctions also reference Funnull’s role in the 2023 Polyfill supply chain attack, where the company purchased and manipulated a widely-used JavaScript library to redirect users to malicious gambling and scam sites. 

Zach Edwards, lead researcher at Silent Push, welcomed the action, calling it “a vital move” in disrupting the largest pig butchering network targeting Americans. He emphasized the growing global sophistication of these financial scams. Many of which now use AI tools to personalize fraud strategies and automate engagement with victims. 

This development highlights the evolving intersection of AI, cybersecurity, and global financial crime. It also underscores the urgent need for international cooperation in combatting AI-powered scam infrastructures. 

Source: 

https://techcrunch.com/2025/05/29/us-government-sanctions-tech-company-involved-in-cyber-scams/