Treasury sanctions Philippines-based company for cyber scams

The Treasury Department sanctioned Funnull Technology Inc., a Philippines-based company that provides computer infrastructure for hundreds of thousands of websites involved in virtual currency investment scams, commonly known as “pig butchering.”

Details: The Treasury Department noted that Americans lose billions of dollars annually to these cyber scams and Funnull has directly facilitated several of these schemes, resulting in over $200 million in U.S. victim-reported losses.

Recent Actions: The Treasury Department has also:

• Sanctioned the Karen National Army, a militia group in Burma, for facilitating cyber scams, leasing land to other organized crime groups, and providing support for human trafficking, smuggling, and the sale of utilities used to provide energy to scam operations.

• Proposed prohibiting U.S. financial institutions from opening or maintaining accounts for Cambodia-based Huione Group, which deals in crypto scams such as “pig butchering.”

Growing Concern: Losses attributed to crypto crimes increased 66% in 2024 to $9.3 billion, according to a recent report from the FBI’s Internet Crime Complaint Center.

ICBA View: In a statement for a congressional hearing on crypto-based romance confidence scams last fall, ICBA said the persistent growth of such scams emphasizes the urgent need for policymakers to prioritize national security, counter illicit finance uses of cryptocurrency, and improve information sharing with community banks.

Resources: ICBA blog posts spotlight the growth of these scams and the need for a policy response.