Ukraine has seen nearly one-fifth of its Internet space come under Russian control or sold to Internet address brokers since February 2022, a new study finds. The analysis indicates large chunks of Ukrainian Internet address space are now in the hands of shadowy proxy and anonymity services that are nested at some of America’s largest Internet service providers (ISPs).

The findings come in a report examining how the Russian invasion has affected Ukraine’s domestic supply of Internet Protocol Version 4 (IPv4) addresses. Researchers at Kentik, a company that measures the performance of Internet networks, found that while a majority of ISPs in Ukraine haven’t changed their infrastructure much since the war began in 2022, others have resorted to selling swathes of their valuable IPv4 address space just to keep the lights on.

For example, Ukraine’s incumbent ISP Ukrtelecom is now routing just 29 percent of the IPv4 address ranges that the company controlled at the start of the war, Kentik found. Although much of that former IP space remains dormant, Ukrtelecom told Kentik’s Doug Madory they were forced to sell many of their address blocks “to secure financial stability and continue delivering essential services.”

“Leasing out a portion of our IPv4 resources allowed us to mitigate some of the extraordinary challenges we have been facing since the full-scale invasion began,” Ukrtelecom told Madory.

Madory found much of the IPv4 space previously allocated to Ukrtelecom is now scattered to more than 100 providers globally, particularly at three large American ISPs — Amazon (AS16509), AT&T (AS7018), and Cogent (AS174).

Another Ukrainian Internet provider — LVS (AS43310) — in 2022 was routing approximately 6,000 IPv4 addresses across the nation. Kentik learned that by November 2022, much of that address space had been parceled out to over a dozen different locations, with the bulk of it being announced at AT&T.

Ditto for the Ukrainian ISP TVCOM, which currently routes nearly 15,000 fewer IPv4 addresses than it did at the start of the war. Madory said most of those addresses have been scattered to 37 other networks outside of Eastern Europe, including Amazon, AT&T, and Microsoft.

The Ukrainian ISP Trinity (AS43554) went offline in early March 2022 during the bloody siege of Mariupol, but its address space eventually began showing up in more than 50 different networks worldwide. Madory found more than 1,000 of Trinity’s IPv4 addresses suddenly appeared on AT&T’s network.

Why are all these former Ukrainian IP addresses being routed by U.S.-based networks like AT&T? According to spur.us, a company that tracks VPN and proxy services, nearly all of the address ranges identified by Kentik now map to commercial proxy services that allow customers to anonymously route their Internet traffic through someone else’s computer.

From a website’s perspective, the traffic from a proxy network user appears to originate from the rented IP address, not from the proxy service customer. These services can be used for several business purposes, such as price comparisons, sales intelligence, web crawlers and content-scraping bots. However, proxy services also are massively abused for hiding cybercrime activity because they can make it difficult to trace malicious traffic to its original source.

IPv4 address ranges are always in high demand, which means they are also quite valuable. There are now multiple companies that will pay ISPs to lease out their unwanted or unused IPv4 address space. Madory said these IPv4 brokers will pay between $100-$500 per month to lease a block of 256 IPv4 addresses, and very often the entities most willing to pay those rental rates are proxy and VPN providers.

A cursory review of all Internet address blocks currently routed through AT&T — as seen in public records maintained by the Internet backbone provider Hurricane Electric — shows a preponderance of country flags other than the United States, including networks originating in Hungary, Lithuania, Moldova, Mauritius, Palestine, Seychelles, Slovenia, and Ukraine.

Asked about the apparent high incidence of proxy services routing foreign address blocks through AT&T, the telecommunications giant said it recently changed its policy about originating routes for network blocks that are not owned and managed by AT&T. That new policy, spelled out in a February 2025 update to AT&T’s terms of service, gives those customers until Sept. 1, 2025 to originate their own IP space from their own autonomous system number (ASN), a unique number assigned to each ISP (AT&T’s is AS7018).

“To ensure our customers receive the best quality of service, we changed our terms for dedicated internet in February 2025,” an AT&T spokesperson said in an emailed reply. “We no longer permit static routes with IP addresses that we have not provided. We have been in the process of identifying and notifying affected customers that they have 90 days to transition to Border Gateway Protocol routing using their own autonomous system number.”

Ironically, the co-mingling of Ukrainian IP address space with proxy providers has resulted in many of these addresses being used in cyberattacks against Ukraine and other enemies of Russia. Earlier this month, the European Union sanctioned Stark Industries Solutions Inc., an ISP that surfaced two weeks before the Russian invasion and quickly became the source of large-scale DDoS attacks and spear-phishing attempts by Russian state-sponsored hacking groups. A deep dive into Stark’s considerable address space showed some of it was sourced from Ukrainian ISPs, and most of it was connected to Russia-based proxy and anonymity services.

Spur’s Chief Technology Officer Riley Kilmer said AT&T’s policy change will likely force many proxy services to migrate to other U.S. providers that have less stringent policies.

“AT&T is the first one of the big ISPs that seems to be actually doing something about this,” Kilmer said. “We track several services that explicitly sell AT&T IP addresses, and it will be very interesting to see what happens to those services come September.”

Still, Kilmer said, there are several other large U.S. ISPs that continue to make it easy for proxy services to bring their own IP addresses and host them in ranges that give the appearance of residential customers. For example, Kentik’s report identified former Ukrainian IP ranges showing up as proxy services routed by Cogent Communications (AS174), a tier-one Internet backbone provider based in Washington, D.C.

Kilmer said Cogent has become an attractive home base for proxy services because it is relatively easy to get Cogent to route an address block.

“In fairness, they transit a lot of traffic,” Kilmer said of Cogent. “But there’s a reason a lot of this proxy stuff shows up as Cogent: Because it’s super easy to get something routed there.”

Cogent declined a request to comment on Kentik’s findings.

The U.S. government today imposed economic sanctions on Funnull Technology Inc., a Philippines-based company that provides computer infrastructure for hundreds of thousands of websites involved in virtual currency investment scams known as “pig butchering.” In January 2025, KrebsOnSecurity detailed how Funnull was being used as a content delivery network that catered to cybercriminals seeking to route their traffic through U.S.-based cloud providers.

“Americans lose billions of dollars annually to these cyber scams, with revenues generated from these crimes rising to record levels in 2024,” reads a statement from the U.S. Department of the Treasury, which sanctioned Funnull and its 40-year-old Chinese administrator Liu Lizhi. “Funnull has directly facilitated several of these schemes, resulting in over $200 million in U.S. victim-reported losses.”

The Treasury Department said Funnull’s operations are linked to the majority of virtual currency investment scam websites reported to the FBI. The agency said Funnull directly facilitated pig butchering and other schemes that resulted in more than $200 million in financial losses by Americans.

Pig butchering is a rampant form of fraud wherein people are lured by flirtatious strangers online into investing in fraudulent cryptocurrency trading platforms. Victims are coached to invest more and more money into what appears to be an extremely profitable trading platform, only to find their money is gone when they wish to cash out.

The scammers often insist that investors pay additional “taxes” on their crypto “earnings” before they can see their invested funds again (spoiler: they never do), and a shocking number of people have lost six figures or more through these pig butchering scams.

KrebsOnSecurity’s January story on Funnull was based on research from the security firm Silent Push, which discovered in October 2024 that a vast number of domains hosted via Funnull were promoting gambling sites that bore the logo of the Suncity Group, a Chinese entity named in a 2024 UN report (PDF) for laundering millions of dollars for the North Korean state-sponsored hacking group Lazarus.

Silent Push found Funnull was a criminal content delivery network (CDN) that carried a great deal of traffic tied to scam websites, funneling the traffic through a dizzying chain of auto-generated domain names and U.S.-based cloud providers before redirecting to malicious or phishous websites. The FBI has released a technical writeup (PDF) of the infrastructure used to manage the malicious Funnull domains between October 2023 and April 2025.

Silent Push revisited Funnull’s infrastructure in January 2025 and found Funnull was still using many of the same Amazon and Microsoft cloud Internet addresses identified as malicious in its October report. Both Amazon and Microsoft pledged to rid their networks of Funnull’s presence following that story, but according to Silent Push’s Zach Edwards only one of those companies has followed through.

Edwards said Silent Push no longer sees Microsoft Internet addresses showing up in Funnull’s infrastructure, while Amazon continues to struggle with removing Funnull servers, including one that appears to have first materialized in 2023.

“Amazon is doing a terrible job — every day since they made those claims to you and us in our public blog they have had IPs still mapped to Funnull, including some that have stayed mapped for inexplicable periods of time,” Edwards said.

Amazon said its Amazon Web Services (AWS) hosting platform actively counters abuse attempts.

“We have stopped hundreds of attempts this year related to this group and we are looking into the information you shared earlier today,” reads a statement shared by Amazon. “If anyone suspects that AWS resources are being used for abusive activity, they can report it to AWS Trust & Safety using the report abuse form here.”

U.S. based cloud providers remain an attractive home base for cybercriminal organizations because many organizations will not be overly aggressive in blocking traffic from U.S.-based cloud networks, as doing so can result in blocking access to many legitimate web destinations that are also on that same shared network segment or host.

What’s more, funneling their bad traffic so that it appears to be coming out of U.S. cloud Internet providers allows cybercriminals to connect to websites from web addresses that are geographically close(r) to their targets and victims (to sidestep location-based security controls by your bank, for example).

Funnull is not the only cybercriminal infrastructure-as-a-service provider that was sanctioned this month: On May 20, 2025, the European Union imposed sanctions on Stark Industries Solutions, an ISP that materialized at the start of Russia’s invasion of Ukraine and has been used as a global proxy network that conceals the true source of cyberattacks and disinformation campaigns against enemies of Russia.

In May 2024, KrebsOnSecurity published a deep dive on Stark Industries Solutions that found much of the malicious traffic traversing Stark’s network (e.g. vulnerability scanning and password brute force attacks) was being bounced through U.S.-based cloud providers. My reporting showed how deeply Stark had penetrated U.S. ISPs, and that its co-founder for many years sold “bulletproof” hosting services that told Russian cybercrime forum customers they would proudly ignore any abuse complaints or police inquiries.

That story examined the history of Stark’s co-founders, Moldovan brothers Ivan and Yuri Neculiti, who each denied past involvement in cybercrime or any current involvement in assisting Russian disinformation efforts or cyberattacks. Nevertheless, the EU sanctioned both brothers as well.

The EU said Stark and the Neculti brothers “enabled various Russian state-sponsored and state-affiliated actors to conduct destabilising activities including coordinated information manipulation and interference and cyber-attacks against the Union and third countries by providing services intended to hide these activities from European law enforcement and security agencies.”

A security architect with the National Labor Relations Board (NLRB) alleges that employees from Elon Musk‘s Department of Government Efficiency (DOGE) transferred gigabytes of sensitive data from agency case files in early March, using short-lived accounts configured to leave few traces of network activity. The NLRB whistleblower said the unusual large data outflows coincided with multiple blocked login attempts from an Internet address in Russia that tried to use valid credentials for a newly-created DOGE user account.

The allegations came in an April 14 letter to the Senate Select Committee on Intelligence, signed by Daniel J. Berulis, a 38-year-old security architect at the NLRB.

NPR, which was the first to report on Berulis’s whistleblower complaint, says NLRB is a small, independent federal agency that investigates and adjudicates complaints about unfair labor practices, and stores “reams of potentially sensitive data, from confidential information about employees who want to form unions to proprietary business information.”

The complaint documents a one-month period beginning March 3, during which DOGE officials reportedly demanded the creation of all-powerful “tenant admin” accounts in NLRB systems that were to be exempted from network logging activity that would otherwise keep a detailed record of all actions taken by those accounts.

Berulis said the new DOGE accounts had unrestricted permission to read, copy, and alter information contained in NLRB databases. The new accounts also could restrict log visibility, delay retention, route logs elsewhere, or even remove them entirely — top-tier user privileges that neither Berulis nor his boss possessed.

Berulis writes that on March 3, a black SUV accompanied by a police escort arrived at his building — the NLRB headquarters in Southeast Washington, D.C. The DOGE staffers did not speak with Berulis or anyone else in NLRB’s IT staff, but instead met with the agency leadership.

“Our acting chief information officer told us not to adhere to standard operating procedure with the DOGE account creation, and there was to be no logs or records made of the accounts created for DOGE employees, who required the highest level of access,” Berulis wrote of their instructions after that meeting.

“We have built in roles that auditors can use and have used extensively in the past but would not give the ability to make changes or access subsystems without approval,” he continued. “The suggestion that they use these accounts was not open to discussion.”

Berulis found that on March 3 one of the DOGE accounts created an opaque, virtual environment known as a “container,” which can be used to build and run programs or scripts without revealing its activities to the rest of the world. Berulis said the container caught his attention because he polled his colleagues and found none of them had ever used containers within the NLRB network.

Berulis said he also noticed that early the next morning — between approximately 3 a.m. and 4 a.m. EST on Tuesday, March 4  — there was a large increase in outgoing traffic from the agency. He said it took several days of investigating with his colleagues to determine that one of the new accounts had transferred approximately 10 gigabytes worth of data from the NLRB’s NxGen case management system.

Berulis said neither he nor his co-workers had the necessary network access rights to review which files were touched or transferred — or even where they went. But his complaint notes the NxGen database contains sensitive information on unions, ongoing legal cases, and corporate secrets.

“I also don’t know if the data was only 10gb in total or whether or not they were consolidated and compressed prior,” Berulis told the senators. “This opens up the possibility that even more data was exfiltrated. Regardless, that kind of spike is extremely unusual because data almost never directly leaves NLRB’s databases.”

Berulis said he and his colleagues grew even more alarmed when they noticed nearly two dozen login attempts from a Russian Internet address (83.149.30,186) that presented valid login credentials for a DOGE employee account — one that had been created just minutes earlier. Berulis said those attempts were all blocked thanks to rules in place that prohibit logins from non-U.S. locations.

“Whoever was attempting to log in was using one of the newly created accounts that were used in the other DOGE related activities and it appeared they had the correct username and password due to the authentication flow only stopping them due to our no-out-of-country logins policy activating,” Berulis wrote. “There were more than 20 such attempts, and what is particularly concerning is that many of these login attempts occurred within 15 minutes of the accounts being created by DOGE engineers.”

According to Berulis, the naming structure of one Microsoft user account connected to the suspicious activity suggested it had been created and later deleted for DOGE use in the NLRB’s cloud systems: “DogeSA_2d5c3e0446f9@nlrb.microsoft.com.” He also found other new Microsoft cloud administrator accounts with nonstandard usernames, including “Whitesox, Chicago M.” and “Dancehall, Jamaica R.”

On March 5, Berulis documented that a large section of logs for recently created network resources were missing, and a network watcher in Microsoft Azure was set to the “off” state, meaning it was no longer collecting and recording data like it should have.

Berulis said he discovered someone had downloaded three external code libraries from GitHub that neither NLRB nor its contractors ever use. A “readme” file in one of the code bundles explained it was created to rotate connections through a large pool of cloud Internet addresses that serve “as a proxy to generate pseudo-infinite IPs for web scraping and brute forcing.” Brute force attacks involve automated login attempts that try many credential combinations in rapid sequence.

The complaint alleges that by March 17 it became clear the NLRB no longer had the resources or network access needed to fully investigate the odd activity from the DOGE accounts, and that on March 24, the agency’s associate chief information officer had agreed the matter should be reported to US-CERT. Operated by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA), US-CERT provides on-site cyber incident response capabilities to federal and state agencies.

But Berulis said that between April 3 and 4, he and the associate CIO were informed that “instructions had come down to drop the US-CERT reporting and investigation and we were directed not to move forward or create an official report.” Berulis said it was at this point he decided to go public with his findings.

Tim Bearese, the NLRB’s acting press secretary, told NPR that DOGE neither requested nor received access to its systems, and that “the agency conducted an investigation after Berulis raised his concerns but ‘determined that no breach of agency systems occurred.'” The NLRB did not respond to questions from KrebsOnSecurity.

Nevertheless, Berulis has shared a number of supporting screenshots showing agency email discussions about the unexplained account activity attributed to the DOGE accounts, as well as NLRB security alerts from Microsoft about network anomalies observed during the timeframes described.

As CNN reported last month, the NLRB has been effectively hobbled since President Trump fired three board members, leaving the agency without the quorum it needs to function.

“Despite its limitations, the agency had become a thorn in the side of some of the richest and most powerful people in the nation — notably Elon Musk, Trump’s key supporter both financially and arguably politically,” CNN wrote.

Both Amazon and Musk’s SpaceX have been suing the NLRB over complaints the agency filed in disputes about workers’ rights and union organizing, arguing that the NLRB’s very existence is unconstitutional. On March 5, a U.S. appeals court unanimously rejected Musk’s claim that the NLRB’s structure somehow violates the Constitution.

Berulis shared screenshots with KrebsOnSecurity showing that on the day the NPR published its story about his claims (April 14), the deputy CIO at NLRB sent an email stating that administrative control had been removed from all employee accounts. Meaning, suddenly none of the IT employees at the agency could do their jobs properly anymore, Berulis said.

Berulis shared a screenshot of an agency-wide email dated April 16 from NLRB director Lasharn Hamilton saying DOGE officials had requested a meeting, and reiterating claims that the agency had no prior “official” contact with any DOGE personnel. The message informed NLRB employees that two DOGE representatives would be detailed to the agency part-time for several months.

Berulis told KrebsOnSecurity he was in the process of filing a support ticket with Microsoft to request more information about the DOGE accounts when his network administrator access was restricted. Now, he’s hoping lawmakers will ask Microsoft to provide more information about what really happened with the accounts.

“That would give us way more insight,” he said. “Microsoft has to be able to see the picture better than we can. That’s my goal, anyway.”

Berulis’s attorney told lawmakers that on April 7, while his client and legal team were preparing the whistleblower complaint, someone physically taped a threatening note to Mr. Berulis’s home door with photographs — taken via drone — of him walking in his neighborhood.

“The threatening note made clear reference to this very disclosure he was preparing for you, as the proper oversight authority,” reads a preface by Berulis’s attorney Andrew P. Bakaj. “While we do not know specifically who did this, we can only speculate that it involved someone with the ability to access NLRB systems.”

Berulis said the response from friends, colleagues and even the public has been largely supportive, and that he doesn’t regret his decision to come forward.

“I didn’t expect the letter on my door or the pushback from [agency] leaders,” he said. “If I had to do it over, would I do it again? Yes, because it wasn’t really even a choice the first time.”

For now, Mr. Berulis is taking some paid family leave from the NLRB. Which is just as well, he said, considering he was stripped of the tools needed to do his job at the agency.

“They came in and took full administrative control and locked everyone out, and said limited permission will be assigned on a need basis going forward” Berulis said of the DOGE employees. “We can’t really do anything, so we’re literally getting paid to count ceiling tiles.”

Further reading: Berulis’s complaint (PDF).

Carrie Roberts* // How does password cracking in the cloud compare to down here on earth? Maybe not as heavenly as imagined. I saw this on the web and got […]

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