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The U.S. Department of the
Overview of the Sanctions and the Scams
Funnull Technology Inc. and Liu Lizhi have been directly implicated in supporting a wide array of fraudulent activities that have resulted in significant financial losses for U.S. citizens. The company, which presents itself as a legitimate IT infrastructure provider, has been responsible for bulk purchasing of IP addresses, which were then leased to cybercriminals. These IPs were used to host fake websites that mimicked trusted crypto exchanges like Coinbase and Binance, defrauding individuals who believed they were making legitimate investments.
The company has been connected to a range of activities including “pig butchering” scams, where cybercriminals build long-term relationships with victims under the guise of romance, only to later manipulate them into transferring money. These scams have seen a sharp increase in recent years, with the total amount defrauded from U.S. citizens reaching unprecedented levels. In addition to crypto scams, Funnull Technology Inc. has been involved in online gambling fraud and phishing schemes, with some activities even tied to money laundering operations from China.
The U.S. government has taken aggressive measures by imposing sanctions on both Funnull Technology Inc. and Liu Lizhi under Executive Orders 13694 and 14144. These sanctions block all U.S.-based assets of these entities and prohibit any transactions with them. Violating these sanctions can lead to severe penalties, including civil and criminal charges. The FBI has also issued a FLASH alert, highlighting the indicators of compromise (IOCs) associated with Funnull’s infrastructure.
The company’s activities, which span from late 2022 through 2024, have triggered a surge in global cybercrime, and the U.S. authorities are keen to tackle the rising tide of online fraud. Funnull’s operations were pivotal in the development of fake platforms, which used sophisticated domain generation algorithms to evade detection and takedowns.
What Undercode Say:
The situation surrounding Funnull Technology Inc. is a stark reminder of the increasing sophistication of cybercrime operations. The role of infrastructure providers, like Funnull, in enabling scams goes largely unnoticed by the public. These entities are often perceived as legitimate businesses, which makes it harder for both authorities and individuals to detect the underlying threat. The sanctions against Funnull highlight how crucial it is for governments and companies to increase their vigilance against such hidden cybercriminal support systems.
In recent years, the rise of cryptocurrency and online financial platforms has presented new opportunities for fraudsters to exploit people’s trust. However, it’s not just individuals who are at risk—these scams also put national security and economic stability at risk. Funnull Technology Inc.’s operations demonstrate the scale of the threat, with thousands of domains, IP addresses, and fake platforms being used in the scams.
The FBI’s FLASH alert shows the extensive reach of Funnull’s activities, noting that over 330,000 unique domains were tied to their infrastructure, further complicating efforts to neutralize the threat. Cybercriminals using Funnull’s services managed to rotate IP addresses rapidly, ensuring their fraudulent activities could continue unhindered. This makes it evident that simply targeting individual scams is not enough—authorities need to dismantle the entire infrastructure enabling these frauds.
In a broader sense, this situation brings attention to the need for stronger cyber laws and better global cooperation. The increasing scale of online fraud requires a multi-faceted approach to tackle the issue, one that includes stricter monitoring of digital infrastructure providers, as well as more robust international collaborations to prevent the movement of illicit funds.
The sanctions against Funnull may not be a complete solution, but they send a clear message to those enabling cybercrime: the risks are high, and the consequences severe. This also underscores the importance of cryptocurrency exchanges and other financial platforms working closely with regulators to ensure the security of their users and prevent the exploitation of their infrastructure.
Fact Checker Results:
Funnull Technology Inc. has been involved in significant cybercrimes, including romance and crypto scams, with U.S. victims losing over \$200 million.
The FBI has identified over 330,000 domains linked to Funnull, showing the vast scale of its operation.
The sanctions placed on Funnull and its administrator Liu Lizhi are part of a larger effort to tackle cybercrime infrastructure worldwide.
Prediction:
Given the increasing sophistication of scams like those perpetrated by Funnull Technology Inc., we can expect a rise in both government interventions and industry efforts to combat online fraud. The crackdown on infrastructure providers will likely become a more prominent strategy for authorities, as it’s clear that dismantling these underlying systems is key to preventing future losses. Additionally, as cybercriminals continue to exploit cryptocurrency platforms, we may see more stringent regulations around digital currency exchanges to help curb such fraud.
References:
Reported By: securityaffairs.com
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