What the NetNut Takedown Reveals About Residential Proxy Sourcing
In July 2026, the FBI and Google disrupted NetNut's residential proxy network. According to reporting from Krebs on Security, SecurityWeek, and BleepingComputer, investigators found that a large share of NetNut's roughly two-million-device IP pool had been built on compromised consumer devices rather than fully informed, consented participation. Coverage at the time described the network as functioning like a botnet. NetNut had operated for years as a well-reviewed, widely used provider before the takedown.
It's easy to read this as an isolated incident at a single company. The more useful read is structural: residential proxy sourcing has been an industry-wide blind spot for years, and NetNut is the case that happened to surface, not necessarily an outlier.
The reseller problem nobody asks about
Here's what most buyers don't know about the residential proxy market: a meaningful share of the providers selling "residential IPs" don't own the underlying network. They...
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