IPv4 Address Acquisition: Essential Due Diligence Checklist

Why Due Diligence Matters in IPv4 Transactions

The global scarcity of IPv4 addresses has driven prices to record highs—averaging between $42 and $60 per address during 2023, according to Hilco Streambank. As a result, buyers face increased risks ranging from fraudulent sellers to blocklists and hijacked allocations. Due diligence is essential to ensure you acquire clean, usable, and legitimately owned IPv4 ranges, protecting your investment and network reputation.

Risks of Inadequate Due Diligence

• Blacklisted Addresses: Previously-abused IPs may be listed on spam or abuse databases, causing mail deliverability issues and connectivity blocks.
• Ownership Disputes: Without verifying registration, you risk buying from someone who doesn’t legitimately own the addresses.
• Hijacked Ranges: Some ranges may be hijacked through registry errors or weak controls, leading to reclamation by rightful owners.
• Hidden Liabilities: Outstanding legal, financial, or policy issues may accompany the block.

Step-by-Step IPv4 Due Diligence Checklist

Follow these essential steps to safeguard your IPv4 investment:

1. Verify Seller Legitimacy
   • Request proof of ownership (e.g., registry records, signed attestation).
   • Check the seller’s reputation (marketplace reviews, ARIN/RIPE/APNIC records).
   • Use an escrow or trusted marketplace (like IP4 Market) to mediate transactions.
2. Check Registry Records
   • Confirm the block’s registration with RIRs (Regional Internet Registries).
   • Ensure there are no pending disputes or transfer restrictions.
3. Screen for Blacklisting and Abuse
   • Use tools like Spamhaus and SORBS to check blacklist status.
   • Search for abuse complaints or unresolved tickets associated with the range.
4. Evaluate Technical Cleanliness
   • Check routing history using BGP tools (e.g., RIPEstat, Hurricane Electric).
   • Investigate previous geolocation assignments and ensure consistency.
5. Confirm Transfer Eligibility
   • Review RIR policies for inter- or intra-region transfers.
   • Prepare required documentation (LOAs, transfer forms, corporate documents).

Useful Tools for IPv4 Verification

• WHOIS/RIR Lookup: ARIN, RIPE NCC, APNIC for registration and status.
• Blacklist Checkers: Spamhaus, MXToolbox for current and historical abuse listings.
• BGP Route Checkers: Hurricane Electric, RIPEstat for route origin and hijacking history.
• Geolocation Databases: MaxMind, IP2Location to review legacy assignments.

IPv4 Marketplace Comparison

Working with IP4 Market

IP4 Market simplifies IPv4 acquisitions by vetting all sellers, verifying address cleanliness, and providing secure escrow services. Buyers benefit from:

• Access to thoroughly screened, blacklisted-free IPv4 blocks
• Transparent pricing and competitive fees
• Full compliance with registry transfer policies
• Dedicated support for technical and legal documentation

This comprehensive approach ensures your next IPv4 purchase is safe, efficient, and future-proof.

FAQ: Due Diligence for IPv4 Purchases

Conclusion

Buying IPv4 addresses is a significant investment that demands rigorous due diligence. By following a structured checklist and partnering with a trusted platform like IP4 Market, network engineers, IT managers, and ISP operators can avoid common pitfalls and secure valuable address space for their organization’s growth.