FBI leads action to shut down Virtualine bulletproof service linked to major cybercrime activity

FBI and international partners seized infrastructure tied to Virtualine, a hosting provider allegedly serving cybercriminalsAuthorities say the service facilitated phishing, ransomware operations, illicit crypto activity, and other crimesInvestigators seized servers and customer data, though no arrests have been announced so far

The FBI has announced it seized the website of Virtualine, a bulletproof hosting service that allegedly allowed child pornography, laundered stolen and extorted crypto, and facilitated a wide range of other criminal activities.

The operation was carried out in partnership with German and Dutch authorities, as well as multiple private companies, with police raiding a data center in Limburg to seize “dozens of physical servers” that also hosted “hundreds” of virtual servers. As a result, they gained access to information about more than 3,000 of Virtualine’s customers, it was said.

“The police are currently taking follow-up actions towards these users,” the Dutch police said, although it’s difficult to say how valuable the information will be, since most bulletproof hosting providers don’t ask for private data, and criminals are good at hiding it, as well.

Bulletproof hosting

Every website, including hacking forums, criminal service providers, even fraudulent landing pages, needs a server that hosts it. Hosting providers renting out these servers are generally compliant with law enforcement agencies, so when the police requests a takedown or files a complaint, most of them comply. However, there is a subset of hosting providers, colloquially called “bulletproof hosting”, which are unusually resistant to pressure from the authorities.

It doesn’t mean all of them are inherently illegal or malicious. There are cases where such services are necessary - in countries with strong censorship, or where website owners want to protect their identities.

In this case, however, Virtualine was openly criminal, with the US Department of Justice (DOJ) saying it advertised its services to criminals on cybercrime forums saying, on at least one occasion, “You can use Virtualine for all illegal/black hat activities (including phis[h]ing, carding, email spam, port scanning and all others) except for child contents and terrorism activities.”

The company took it a step further. In March 2026, it introduced an “additional protection plan” that offers customers who receive takedown requests “another shell company not affiliated with Virtualine, after which the server is reactivated.”

Interestingly enough, Virtualine said it did not accept child porn or terrorism content, but according to the DOJ - did exactly the opposite.

One of its clients created a forum that allowed users to post and sell access to “nude, sexually suggestive, and/or sexually explicit images and videos of minors and adults,” while also promoting a hack-for-hire service that broke into people’s accounts and stole their explicit photos and videos. Virtualine was even notified about it by law enforcement agencies from Germany, Canada, and Australia, but decided to ignore the warnings and continue hosting the client.

At the same time, Virtualine’s customers were allowed to pay in Bitcoin, offering an unhosted bitcoin address that allowed customers “to direct pay without concern their funds would be flagged as illicit”. Citing Chainalysis data, BleepingComputer said the company’s wallet was seen receiving funds from ransomware operations, infostealers, Russian-language cybercrime forums, and more.

“Virtualine then laundered those proceeds to conceal their origin,” the blockchain company added.

Piercing the kevlar

Besides confiscating the servers and the data, the main website - virtualine.net - was defaced and now shows the usual FBI “this website has been seized” message. Unfortunately, no arrests have been made, which means the service will most likely continue operating.

According to BleepingComputer, it is “partially online” but its network prefixes currently have very low routing visibility, which could mean that much of its infrastructure was pulled offline.

Usually, disruptions such as this one are only temporary, and it won’t take long before they are remedied and the service becomes fully operational again.