Either Funko is lying or their "brand protection partner" is lying. Also, what the fuck does Funko have to protect? The only thing they actually created was those beady little eyes they put on everyone else's IP.
On threads a few days ago there were images of indie games posted to itch which mentioned playing with using Funko characters so there was infringing content on itch but the domain takedown was way too heavy handed.
Yeah, so a good faith response would be to ask Itch to remove that game and associated copyrighted imagery. Nobody would have really minded that. Uncharitable, I would have thought, but with copyright law being what it is, perhaps legally necessary.
What they did, however, was they told Itch's DNS that Itch was hosting fraud and phishing, which resulted in their whole service going offline for some hours. That is deceitful and hostile.