Tag: Web Fraud 2.0

  • Tech Firms Dismantle Botnet That Turned 1.3M TV Boxes Into Proxies

    Tech Firms Dismantle Botnet That Turned 1.3M TV Boxes Into Proxies

    Google said today it worked with industry partners to dismantle a botnet made up of more than 1.3 million Android TV set-top boxes that ship with malicious software which secretly rents the user’s Internet connection out to strangers and conducts advertising fraud. Experts involved in the takedown say the action is likely to sever the botnet’s access to more than 10 million additional compromised systems, including other Internet of Things (IoT) products such as Android-based healthcare devices and karaoke machines.

    A report from the Google Threat Intelligence Group (GTIG) said Google has severed ties with Videostrong Technology Co., a TV box manufacturer in China that GTIG and other industry experts concluded was responsible for including malware that enrolled more than 1.3 million set-top boxes in a botnet dubbed “XCPE” (named after one of the malware’s core code components).

    The global distribution of XCPE botnet infections. Image: Google Threat Intelligence Group.

    The report said the XCPE botnet loaded the user’s device with software that makes their Internet address available for resale by multiple “residential proxy” services, which allow customers to rent Internet addresses as a way to anonymize their web traffic or spoof their true location. As detailed in several stories here over the past year, residential proxy services are a major source of unwanted and often malicious traffic, including account takeover activity, advertising fraud, and mass content scraping for AI projects.

    “Videostrong monetized the backdoor by selling access to criminal affiliates and loading those affiliates’ malware modules onto infected devices,” the GTIG post reads, noting that Google took legal action to take down the domains and servers Videostrong used to control the botnet and install additional malware. “A device manufacturer intentionally infecting their users with malware is an unacceptable breach of trust, and represents a serious risk to those users. Without users’ knowledge or consent, infected devices were offered as a distribution mechanism for a wide array of criminal actors.”

    The report notes that while TV boxes made up the the majority of the botnet, the same XCPE malware was found in other Android-based IoT products, including telehealth devices, karaoke machines, and even digital signage systems.

    Google said it requires all Android device makers to pass compatibility and security tests to ensure their products don’t harm users, but that Videostrong nevertheless found a way to load their malicious software immediately after a user boots up one of these devices for the first time (Google says it has since addressed that weakness).

    The GTIG report calls out a number of residential proxy providers whose software development kits were routinely downloaded by devices infected by the XCPE botnet. Those include AppSalt, also known as Honeygain, which is owned by the Vilnius, Lithuania-based Oxylabs. In October 2026, Oxylabs was relaunched under a new brand called Source, after receiving $130 million in funding from private equity firm Warburg Pincus that reportedly valued the business at $3.6 billion. Oxylabs did not respond to a request for comment.

    Another provider linked to the botnet was NetNut, a once sprawling residential proxy company operated by the publicly-traded Israeli company Alarum Technologies. In July 2026, the FBI worked with industry partners to seize hundreds of domains associated with NetNut, saying the company was responsible for operating a separate botnet called Popa that enslaved TV boxes as residential proxies. Other proxy providers named in the GTIG report include EarnFM, Traffmonetizer, Jaguar, LINKFOG, BMW/IPWeb and GaGaNode.

    Google’s announcement credits a number of industry partners, including Synthient, a startup that tracks proxy providers. In January 2026, Synthient published research into the rapid spread of the Kimwolf botnet, which at the time was hammering networks worldwide with record-smashing DDoS attacks. Synthient documented how Kimwolf infected millions of Android set-top boxes virtually overnight, using a widespread vulnerability in these residential proxy services to compromise other Android-based devices inside the local networks of unsuspecting TV box users.

    Synthient’s research caused dozens of residential proxy providers to patch their networks, which helped to fragment the Kimwolf botnet into much smaller pieces that made its incessant and disruptive DDoS attacks far easier for network operators to manage. It also attracted the attention of the Motion Picture Association (MPA), a trade group representing the major Hollywood studios, which partnered with Synthient to purchase and tear apart a number of popular Android TV set-top boxes — including some that were being infected by Kimwolf and other IoT botnets.

    In a report published today, Synthient examined a popular, pre-infected TV box sold under the brand MECOOL by a publicly traded company in China called Skyworth Technology, concluding that MECOOL also bundled the malware from Videostrong Technology Co. and likewise installed AppSalt/Honeygain and other proxy components.

    The MECOOL storefront and marketing. Image: Synthient.com.

    Synthient founder Ben Brundage told KrebsOnSecurity that Videostrong’s malware also distributed software for the proxy service Grass. In our November 2025 story, “Is Your Android TV Streaming Box Part of a Botnet?” we quoted a researcher from Censys who found the popular Superbox TV streaming device bundled Grass’s residential proxy software. We also quoted the Grass founder, who denied any affiliation with the TV box maker.

    That November 2025 story noted that Superbox and similar Android TV set-top boxes gain new customers primarily by engaging influencers on Tiktok and other social networks who praise the product’s ability to offer hundreds of (pirated) pay TV streaming services for a one-time fee.

    Likewise, Synthient’s report observes that the MECOOL set-top boxes exploded in popularity after the product was mentioned in 2023 by the Youtube channel Linux Tech Tips, which has an audience of nearly 17 million subscribers [Linux Tech Tips said in a statement shared with Synthient that it has since updated the video to explicitly frame the product as a scam and have removed all associated affiliate links].

    The popular Youtube channel Linus Tech Tips discussing MECOOL TV streaming boxes.

    The GTIG report estimates the XCPE botnet takedown should sever access to at least 10 million additional compromised devices, noting that the various proxy and ad fraud affiliates of Videostrong “each have diversified distribution channels for their modules beyond XCPE.”

    Synthient’s Brundage echoed that conclusion, calling the 1.3 million number “highly conservative.”

    “The scale of affected devices is likely way higher,” he said. “This is probably the largest operation against backdoored TV boxes that we’ve seen.”

    Further reading:
    Plume Security Labs white paper on the XCPE botnet (PDF)
    Black Lotus Labs writeup on LinkedIn
    TrendAI’s analysis
    Synthient’s list of affected devices, broken down by model number

    Source: Krebs on Security · 2026-11-03

  • U.K. Sanctions Cryptomus for RU Money Laundering

    U.K. Sanctions Cryptomus for RU Money Laundering

    The United Kingdom has issued economic sanctions against Cryptomus, a chameleonic cryptocurrency platform that experts say serves as a major conduit for payments related to ransomware, narcotics, darknet markets, fraud and cybercrime services that are helping Russia circumvent existing financial restrictions.

    Heleket’s support agent on Telegram claims, despite all evidence to the contrary, that it is not affiliated with Cryptomus. Image: Richard Sanders.

    On October 8, the U.K. issued sanctions (PDF) against Cryptomus — previously known as Certa Payments and Xeltox Enterprises — for processing payments that benefit the Russian government and its financial institutions. The sanctions freeze any Cryptomus assets at U.K. banks, and bar British companies from offering it any business, virtual or otherwise. Also targeted in these sanctions were the virtual payment platforms VexPay, TokenSpot, and the Tsunami Payments service.

    As explained in our December 2024 investigation, “How Cryptocurrency Turns to Cash in Russian Banks,” Cryptomus has been a key payment processor for dozens of Russian cryptocurrency exchanges and websites hawking cybercrime services. The company has changed its name several times since emerging in 2022, most recently to “Heleket” last year after Canada levied a record CAD $176 million fine against the platform for anti-money laundering violations.

    The blockchain data-crunching firm Chainalysis said the U.K. sanctions target the broader infrastructure supporting Russia’s wartime economy.

    “Cryptomus and Heleket have emerged as major payment hubs for illicit activity,” Chainalysis wrote in an October 8 blog post. “Together, these services received more illicit funds across tracked categories than the mixers in our dataset and the number of illicit counterparties surged to more than 900 in a single month in late 2025.”

    The Cryptomus support bot on Telegram, responding on Oct. 8 to an inquiry by saying the platform was suddenly unable to process transactions.

    In April 2026, the blockchain analysis firm TRM Labs found Cryptomus had processed more than $7 billion in transactions since its inception in 2022, including transactions associated with child sexual abuse material vendors, terrorist financing networks, and human trafficking operations.

    TRM noted that Cryptomus’s transaction volume cratered after the platform instituted new “know your customer” or KYC rules, and that the cryptocurrency platform responded to the Canadian fines by launching Heleket as a parallel service that continued to offer no-KYC payment processing.

    Richard Sanders is a blockchain analyst and investigator who spent months mapping out Cryptomus’s payment infrastructure and transacting with its customers. Sanders said the U.K. sanctions on Cryptomus are important because Canada’s fine against the platform was ultimately unenforceable and uncollectible.

    “A fine doesn’t stop a cryptocurrency payment processor from processing payments,” Sanders wrote on LinkedIn. “Sanctions kill the operation. The distinction matters.”

    As our 2024 investigation noted, Cryptomus shared a Vancouver address with dozens of other foreign currency dealers and money transfer businesses — none of which appeared to be physically located there. Following the CAD $176 million fine for alleged money laundering violations, Cryptomus appealed the penalty, launched Heleket as a parallel service, and kept on processing large volumes of sketchy transactions, Sanders said.

    Sanders said the sanctions also are notable because they are the first known instance of a “Five Eyes” country (referring to the Australia, Canada, New Zealand, the U.K. and the U.S.) sanctioning a cryptocurrency operation incorporated in another Five Eyes jurisdiction.

    Where do entities like Cryptomus and Heleket derive their authority to offer international financial services? The answer appears to involve fake financial institutions overseen by a phony regulatory body positioned in a country that is not widely recognized as a sovereign nation.

    Our 2024 investigation found the sole shareholder of Cryptomus’s parent company Certa Payments was a 25-year-old Ukrainian woman who also headed several other firms, including the WS Management and Advisory Corporation, which bills itself as the regulatory body that exclusively oversees licenses for cryptocurrency, foreign exchange and online gaming businesses incorporated in the disputed region in northwest Africa known as the Western Sahara.

    That entity’s website — crasadr.com — says it assists applicants with bank setup and formation, online gaming licenses, and the creation and licensing of foreign exchange brokers. One of Certa Payments’ former sites — certa[.]website — also shared a server with 12 other domains, including rasd-state[.]ws, a website for the Central Reserve Authority of the Western Sahara.

    The website crasadr dot com, the official website of the Central Reserve Authority of Western Sahara, which lists the entities awarded licenses for cryptocurrencies, gaming and foreign exchange services.

    Source: Krebs on Security · 2026-10-14