What the NetNut Takedown Reveals About Residential Proxy Sourcing

After the FBI and Google shut down the NetNut residential proxy network in July 2026, HackerNoon examines the market's structural problem: most providers resell others' IP pools without controlling their origin. A significant portion of NetNut's ~2 million devices turned out to be compromised consumer gadgets.

• NetNut network had about 2 million devices, some infected gadgets
• Many providers resell pools without owning infrastructure
• One failure in a pool can affect multiple reseller brands at once
• Bright Data and Squid Proxies own infrastructure directly