A court-authorized international law enforcement operation led by the U.S. Department of Justice has disrupted SocksEscort, a large residential proxy network that allegedly exploited thousands of internet routers worldwide to facilitate cybercrime and financial fraud.
Authorities said the U.S. government executed seizure warrants against dozens of internet domains registered in the United States that were allegedly connected to the criminal infrastructure. The announcement was made by U.S. Attorney Eric Grant.
According to court documents, the SocksEscort network infected home and small business routers with malware, allowing operators to redirect internet traffic through compromised devices
The network then sold access to these infected routers as proxy services to customers seeking to hide their true locations online.
Investigators said the service had been operating since at least the summer of 2020 and offered access to roughly 369,000 IP addresses at various points
As of February 2026, the SocksEscort platform listed about 8,000 infected routers available for purchase, including around 2,500 located in the United States.
Cybercriminals allegedly used the proxy network to conceal their identities while carrying out a range of fraudulent activities. These included account takeovers targeting U.S. bank accounts and cryptocurrency platforms, as well as schemes involving fraudulent unemployment insurance claims.
Authorities said the crimes caused millions of dollars in losses to victims. Among the cases cited by investigators was a New York resident who lost approximately $1 million in cryptocurrency from an exchange account
In another case, a manufacturing company in Pennsylvania lost $700,000, while current and former U.S. service members using Military Star credit cards were defrauded of about $100,000.
The operation involved coordinated action by international partners, with law enforcement agencies in Austria, France, and the Netherlands helping dismantle key SocksEscort servers.
The investigation is being led by the Federal Bureau of Investigation Sacramento Field Office, along with the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service and IRS Criminal Investigation.
Authorities said the operation highlights the growing importance of international cooperation in combating cybercrime networks that exploit global digital infrastructure.
Your web3 identity + services + payments in one single link. Get your pay3.so link today.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Argentine Court Orders Polymarket Block
A Buenos Aires court has ordered internet providers to block the blockchain-based prediction market Polymarket nationwide, ruling it operated as an unlicensed online betting platform. The decision also directs Google and Apple to remove the app from local stores.
Judicial Ruling and Government
DailyCoin31m ago
CFTC Chair: Arizona's Lawsuit Against Kalshi Is a Jurisdictional Dispute, Escalating to Criminal Prosecution Is Entirely Inappropriate
US Commodity Futures Trading Commission Chair Selig responded to Arizona's criminal charges against Kalshi, characterizing the matter as a jurisdictional dispute and stating that the charges are improper. Attorney General Mayes accused Kalshi of offering illegal gambling services, emphasizing that the company must comply with the law. The CFTC will closely monitor developments in the case.
GateNews1h ago
Three Teenagers Sue xAI in the US, Alleging Grok Generated Child Sexual Abuse Material
Three teenage girls filed a lawsuit against Elon Musk's xAI in California federal court, alleging that its chatbot Grok generated child sexual abuse material without consent. The plaintiffs are seeking damages and an injunction to prohibit the generation of such content. According to the complaint, the feature has generated over 20,000 related images, with victims including at least 18 minors.
GateNews1h ago
Taipei 3 In-Person Crypto Robbery Cases in 4 Days! Scammers Use "Fee-Free" Tactics to Deceive Residents, Police Urge Use of Legitimate Exchanges
Taipei has recently experienced three cryptocurrency robbery cases, where criminals lured victims into private transactions by claiming zero fees, then robbed them. Police are urging the public to conduct transactions exclusively through legitimate exchanges to protect their personal safety, and warning them to be cautious of illegal solicitation on social media platforms.
CryptoCity2h ago
Husband accuses wife of stealing over 2,000 bitcoins! Judge: The plaintiff has a very high chance of winning.
The UK High Court is hearing a Bitcoin theft case in which the plaintiff accuses his wife of stealing 2,323 bitcoins and covertly recording the seed phrase through surveillance equipment. The court found the evidence disadvantageous to the defendant, including recordings and seized devices. While some claims were dismissed, the plaintiff has a very high probability of success, and the court will maintain the asset freeze order.
区块客2h ago
South Korean Police Plan to Establish Guidelines for Seizing Privacy Coins; Virtual Assets Confiscated Over Past Five Years Valued at 545 Billion Won
The Korean National Police Agency is developing new virtual asset seizure management guidelines, incorporating handling of privacy coins for the first time. The new regulations will clarify software wallet management, address virtual asset custody gaps, and improve law enforcement efficiency. Police plan to designate private custodian institutions, while experts recommend establishing a centralized public custody mechanism to reduce risks. This reform has been prompted by recent Bitcoin theft incidents, driving the management system's transition toward the digital asset era.
区块客2h ago
