Philippine tech firm sanctioned by U.S. over $200 million romance scam network

Independent Singapore

3 days ago

MANILA: Punitive action has been taken by the United States against a Philippine technology corporation located in Bonifacio Global City (BGC) for purportedly playing a vital role in an expansive global online deception scheme called 'pig butchering.' According to a recent SCMP report, Funnull Technology Inc., together with Chinese national Liu Lizhi, was targeted by the U.S. Treasury Department for allegedly supplying the digital set-up used to host more than 332,000 domains associated with bogus cryptocurrency investment sites. 'Pig butchering' scams exposed in global operation
According to U.S. representatives, these fake platforms victimised defenceless persons by engaging in illusory online relationships before coercing them into spending money on fake crypto arrangements. Victims lose an average of more than US$150,000, with total losses going beyond US$200 million.
'This is a ruthless, calculated form of exploitation,' said Tammy Bruce, spokesperson for the U.S. State Department. 'We will go after those who misuse virtual currencies and internet services to perpetrate fraud and other crimes.' See also Opponents of coup in Myanmar call for more large-scale protests Tech infrastructure used to evade detection
The FBI, which has been probing into Funnull and tracking its movements since January, disclosed that the firm bought bulk IP addresses from key cloud providers and sold them back to defrauders. These were utilised to host con websites and escape exposure by hastily spinning domains and IP addresses.
Funnull also received widespread media coverage and in cybersecurity circles after obtaining Polyfill.io, a JavaScript library extensively used by developers. Soon after, experts at Silent Push and Sansec cautioned that sites using Polyfill code were rerouting users to hostile domains hosted on Funnull's network.
The U.S. Treasury noted that Funnull is associated with the common crypto scam websites reported to the FBI and had a 'critical enabling role' in their rampant spread. Liu Lizhi, purportedly one of the overseers of the manoeuvre, controlled inside documents that proved Funnull workers were assigned to distribute domains for use in phishing, fake investment schemes, and gambling activities. Calls for local investigation amid regulatory gaps
Funnull, listed with the Philippine Securities and Exchange Commission in 2021, has its operations from the 14th floor of the Net Cube Centre in BGC, a government-designated 'cyberpark' giving tax inducements. This has triggered fear among tech regulators and transparency activists.
'This operation was likely based out of a shared or co-working space, which makes it easier to stay under the radar,' said Dominic Ligot of Democracy.NET.PH and Data Ethics PH. 'Scam operations often choose prestigious business locations to project legitimacy.'
Ligot and other specialists have complained about the absence of strong regulatory implementation in the Philippines, inferring that weak monitoring, exploitation, with a nominal inspection permit sham businesses to thrive.
A high-ranking industry insider, speaking incognito, suspected that some government bureaucrats may have been enticed to favour Funnull's business licenses. The source called for the conduct of a thorough inquiry into public officials who approved the firm's registration and operating certificate. See also Police arrest man involved in hotel booking scam
Presently, neither the Philippine government nor the city of Taguig has issued statements in response to the U.S. sanctions. The FBI has advised victims to come forward as the investigation continues.