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A crackdown would probably be an FBI responsibility, the NSA is not a law enforcement agency and absolutely does not have the authority.

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In terms of law enforcement, sure. But what we really need is competent white hat hackers doing battle with the black hats.

Even if no one goes to jail, the NSA could make residential proxies much harder to operate in the US simply by detecting them and reporting them to ISPs. It would be good for ISPs to then validate the reports properly, give warnings, etc.

A lot of residential proxy networks don't let you access financial and government websites because that would create an actual national security risk and get them shut down. So, given that, what is the actionable complaint?

- Actual data and identity loss of American citizens.

- Malware that can record video and audio from infected devices.

- Infrastructure for foreign covert influence campaigns.

- Botnets used in hacking and DoS attacks.

So that would also apply to, like, Xiaomi, right? Or basically any foreign code you run?

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