US Treasury Targets Cybercrime Facilitators in the Philippines and Cambodia

The U.S. Department of the Treasury is cracking down on international cybercrime, announcing sanctions against a Philippine company and its administrator for their alleged roles in facilitating “pig butchering” scams. These scams involve fraudulent cryptocurrency investments and phishing schemes that have cost victims millions.

The Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned Funnull Technology Inc. and its administrator, Liu Lizhi, for providing the digital infrastructure used in these scams.

What is “Pig Butchering”?

These scams are characterized by criminals building trust with victims, often through dating apps or social media. Once a relationship is established, the scammers convince their victims to invest in fake cryptocurrency platforms. Victims are manipulated into depositing large sums of money, which are then stolen.

“Pig butchering scams are a particularly insidious form of cybercrime that preys on people’s trust and desire for connection,” said a Treasury official.

Funnull Technology Inc.: Infrastructure for Scams

Funnull Technology Inc. is accused of providing digital infrastructure for hundreds of thousands of fraudulent websites associated with “pig butchering” scams, online gambling, and phishing. The company allegedly purchased IP addresses in bulk from cloud service providers and resold them to cybercriminals to host fraudulent platforms. It is estimated that the scams facilitated by Funnull have caused losses exceeding $200 million for victims in the U.S.

Huione Group: Global Money Laundering on a Massive Scale

In a related action, the Treasury’s Financial Crimes Enforcement Network (FinCEN) identified the Cambodia-based Huione Group as a “primary money laundering concern.” FinCEN has proposed cutting off the group’s access to the U.S. financial system.

The Huione Group is accused of laundering at least $4 billion in illicit funds between August 2021 and January 2025. These funds are linked to the aforementioned scams, North Korean-sponsored cyberattacks, and other transnational criminal activities.

The Huione Group’s alleged illicit activities involved several entities:

• Huione Pay: A payment service that allegedly processed significant transactions linked to illicit activities.
• Huione Crypto: A digital asset service provider.
• Huione Guarantee: An online guarantee platform used to facilitate fraudulent transactions.

FinCEN has proposed measures to prohibit U.S. financial institutions from maintaining correspondent accounts for the Huione Group, aiming to sever its access to the American financial system.

Global Impact and Prevention Measures

These actions reflect a more aggressive stance by the U.S. Treasury in combating infrastructures that facilitate cybercrimes and financial fraud. The public is encouraged to report scams and other illegal activities to the FBI’s Internet Crime Complaint Center (IC3).

The Treasury Department’s actions send a clear message to those who enable cybercrime: they will be held accountable.

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