Why were sanctions imposed on Funnull Technology Inc. and Liu 'Steve' Lizhi?

Allegedly facilitating financial schemes resulting in more than $200 million in financial losses by Americans, and being linked to the majority of pig butchering scams reported to the FBI

Chinese National Maintains Tech Company Accounts Despite US Sanctions for Virtual Currency Scams

Q: Who was sanctioned by the U.S. Treasury Department in May 2025?

Liu 'Steve' Lizhi, a 40-year-old Chinese national

Q: What is Funnull Technology Inc. accused of doing?

Providing infrastructure for hundreds of thousands of websites involved in virtual currency investment scams known as 'pig butchering'

Q: Where does Liu 'Steve' Lizhi still maintain active accounts despite sanctions?

At several major American tech companies, including Facebook, Github, LinkedIn, PayPal, and Twitter/X

The U.S. Treasury Department sanctioned Liu 'Steve' Lizhi and Funnull Technology Inc for operating a cloud provider linked to virtual currency scams, but the accused continues active accounts at major American tech companies.

The U.S. Treasury Department has imposed economic sanctions on a Chinese national and his company for operating a cloud provider linked to virtual currency investment scams, but the accused continues to maintain active accounts at several major American tech companies.

According to a report by KrebsOnSecurity, Liu "Steve" Lizhi, a 40-year-old Chinese national, was sanctioned in May 2025 for his alleged role in operating Funnull Technology Inc., a Philippines-based company that provides infrastructure for hundreds of thousands of websites involved in virtual currency investment scams known as "pig butchering."

The Treasury Department alleges that Funnull directly facilitated financial schemes resulting in more than $200 million in financial losses by Americans, and that the company's operations were linked to the majority of pig butchering scams reported to the FBI.

What Happened

In May 2025, the U.S. Department of the Treasury announced economic sanctions against Funnull Technology Inc., a Philippines-based company alleged to provide infrastructure for hundreds of thousands of websites involved in virtual currency investment scams known as "pig butchering."

The Treasury also sanctioned Funnull's alleged operator, Liu "Steve" Lizhi, a 40-year-old Chinese national. The government says Funnull directly facilitated financial schemes resulting in more than $200 million in financial losses by Americans, and that the company's operations were linked to the majority of pig butchering scams reported to the FBI.

However, despite being sanctioned, Lizhi continues to maintain active accounts at several major American tech companies, including Facebook, Github, LinkedIn, PayPal, and Twitter/X. His 17-year-old account on LinkedIn had hundreds of followers until it was deleted this morning, just hours after KrebsOnSecurity sought comment from LinkedIn.

Background and Context

The Treasury Department's sanctions against Funnull Technology Inc. are part of a broader effort to combat virtual currency investment scams, which have become increasingly prevalent in recent years.

Pig butchering scams involve scammers convincing victims to invest in fake cryptocurrency schemes, often using social media and other online platforms to lure in unsuspecting investors.

The Treasury Department alleges that Funnull provided infrastructure for these scams, including domain names and web design templates, making it easier for scammers to impersonate trusted brands and quickly change to different domain names and IP addresses when legitimate providers attempt to take the websites down.

Why It Matters to the Industry

The fact that Lizhi continues to maintain active accounts at several major American tech companies raises concerns about the effectiveness of these companies' policies for identifying and blocking sanctioned individuals and entities.

This is particularly concerning in the context of the adult industry, where platforms often rely on third-party services like cloud providers and payment processors to operate.

The Treasury Department's sanctions against Funnull Technology Inc. highlight the need for greater vigilance and cooperation between tech companies and law enforcement agencies to combat virtual currency investment scams and other forms of online financial crime.

What Comes Next

The U.S. Treasury Department has announced that it will continue to work with tech companies to identify and block sanctioned individuals and entities, but the effectiveness of these efforts remains to be seen.

In the meantime, adult industry platforms and operators would do well to take a closer look at their own policies and procedures for identifying and blocking sanctioned individuals and entities, as well as their relationships with third-party service providers like cloud providers and payment processors.

Key Facts

The U.S. Treasury Department has imposed economic sanctions on Liu "Steve" Lizhi, a 40-year-old Chinese national, for his alleged role in operating Funnull Technology Inc., a Philippines-based company that provides infrastructure for virtual currency investment scams.
Funnull directly facilitated financial schemes resulting in more than $200 million in financial losses by Americans, and the company's operations were linked to the majority of pig butchering scams reported to the FBI.
Lizhi continues to maintain active accounts at several major American tech companies, including Facebook, Github, LinkedIn, PayPal, and Twitter/X.
The Treasury Department alleges that Funnull provided infrastructure for pig butchering scams, including domain names and web design templates.
The U.S. Treasury Department has announced that it will continue to work with tech companies to identify and block sanctioned individuals and entities.