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They're also used by the good guys who are going after those exact same bad guys.
True, though unfortunately people can not be trusted to declare their intentions so the residential proxies will ultimately have to be sacrificed and given they are fairly easy to identify by behavior I could foresee the feds now having a reason to round 'em up faster. They already took out NetNut, IPIDEA, SocksEscort, Doppellganger and the "Kim Wolf" Offshoots.
Some of the more legit providers have KYC in place, and do literally require you to declare you intentions to open an account, and block certain traffic proactively unless you can prove a legitimate use.
How do I identify which residential proxies have gone through KYC and which are wanting to pour hot sauce in my under garments?
The ones that do KYC list it pretty prominently on their website.
They list the IP addresses of all the residential proxies? Is there a link to the netsets of all the IPv4 addresses they are using I can download once a day? (preferably over rsync but git over https is fine too)
I don't think even the most "ethical" providers are going to volunteer that information, since that defeats the entire purpose of having a residential proxy in the first place.
No...? That's a completely different question than what we were talking about above? The customers of a residential proxy who would be subject to KYC are the people using the addresses -- this has nothing to do with the exit addresses of those who have joined the network.
That's a completely different question than what we were talking about above?

In fairness to me, I did say "Most tools can be dual-use. Residential proxies are also used by malevolent actors to hack infrastructure or financial institutions and let some other poor soul get investigated for it. This is why we can't have nice things."

So it could be Alice. I know Alice has good intentions. It could be Bob, we know what Bob is up to but I will give him a pass regardless because Bob did nice things in the past. But then there is Mallory ... Mallory Malfoid is up to no good. I need to know which IP's are used by Alice and Bob so I can exclude them from my automated protections. Mallory will automatically get rate limited to 16kb/s, 1 HTTP request every 5 seconds and if they bounce around different residential proxies they get redirected to a bathtub regardless of which residential proxy they use.

Yes, but KYC is a process where the service provider is making that determination. Either to a legal standard and/or their own standards.

In no world does "KYC" mean "expose your customer list to the whole world", let alone undermine the entire purpose of the product you're selling.

"I want to dox all of the customers of a proxy provider" is just an unreasonable ask. We wouldn't expect or want ISPs or VPNs or telecoms to do this.

In no world does "KYC" mean "expose your customer list to the whole world"

Agreed. Alice Rhodes, Bob Bojangle and Mallory Malfoid will all be treated equally.

This was a fun thread, I have always wanted to give them last names.