On the other hand, Verizon also owns a large block of IP addresses that they give out to their residential customers.
NordVPN takes advantage of the fact that people like Netflix and Amazon don’t want to block out Verizon’s ip ranges, and disguise network traffic as residential traffic.
Do they? Last time I looked into this drama, it seems like the botnet accusations were just scurrilous slander.
https://www.comparitech.com/blog/vpn-privacy/nord-vpn-botnet...
The founder of the guilty party is also the founder of the company behind NordVPN. From the article it also seems like the operational practices are similar. Additionally, it is stated by the CEO of the guilty party that operational activities will resume as normal since the suit is only for damages. Assuming that NordVPN operates in a similar way, then a residential proxy service is still on the menu.
This is a common use for residential proxies. Ticket touts buy use of the infected users to make requests to try beat restrictions on access from data-centre hosts or high-volume access from and other hosts, to increase their charge of getting valuable tickets for later resale.
A number of backdoored (by the creator, by someone cracking into their source repositories, or in this case by buy-out) free browser extensions, VPN apps, and such, turn the user's machines into a proxy like this.