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Due to the concerted law enforcement action (and successive sanctions) against Hydra, cryptocurrency cash-out services are often wary of running under the same name as they did on the now-defunct market. Thus Flashpoint analysts have observed several cash-out services and their users stating that the service in question had been present on Hydra, typically in a positive context. On the one-year anniversary of Hydra’s seizure, Flashpoint explores how threat actors have adapted to fill the market’s void and fuel their illicit aims—from narcotics transactions to money laundering. As we mentioned previously, while shops specializing in drugs are the most popular type of darknet market, they’re not the only type of darknet market to achieve consistent sales.
Darknet markets have become increasingly popular in recent years, providing a platform for anonymous online transactions. These marketplaces allow users to buy and sell various illegal goods and services using cryptocurrencies, primarily Bitcoin.
World’s biggest darknet marketplace, Russia-linked Hydra Market, seized and shut down, DOJ says
The Rise of Darknet Markets
Darknet markets operate on the dark web, a hidden part of the internet that requires specific software or authorization to access. While the dark web is often associated with illicit activities, it also serves as a hub for those seeking anonymity for legitimate reasons.
Bitcoin, known for its decentralized nature and pseudo-anonymity, has become the preferred currency on darknet markets due to its widespread acceptance and ease of use.
Accepted Bitcoin Variants
- It’s important to know how these tools are used so you can perform reconnaissance and identify potential attacks or leaked information that can be used against you.
- Law enforcement agencies have seen notable successes in identifying and apprehending darknet market operators.
- Hydra’s online criminal marketplace allowed users primarily from Russian-speaking nations to buy and sell illegal drugs, stolen financial data, fake IDs, money-laundering services and other illegal goods and services.
While Bitcoin is the dominant cryptocurrency accepted by darknet markets, certain variants or forks of Bitcoin may also be used. These variations provide additional privacy features or different transaction consensus mechanisms.
Why are These Markets Shunning Exit Scams?
Is an English and Russian language marketplace that seems to have captured many of Hydra’s former vendors and consumers. Darknet activities increased demand for Bitcoin, solidifying its value in the real world. Many argue that the early adoption of Bitcoin by Darknet users influenced its subsequent mainstream acceptance.
Bitcoin (BTC): The original and most widely recognized variant, Bitcoin (BTC), remains the primary currency accepted on darknet markets. It offers a high level of liquidity and is commonly used for both legal and illegal transactions.
Bitcoin Cash (BCH): Created as a result of a hard fork from Bitcoin, Bitcoin Cash (BCH) aims to offer faster and cheaper transactions. Some darknet markets accept BCH as an alternative to BTC.
Monero (XMR): Although not a direct variant of Bitcoin, Monero (XMR) is a popular privacy-focused cryptocurrency accepted on some darknet markets. Its advanced encryption techniques make tracing transactions significantly more challenging.
Understanding Darknet Markets
Factors Influencing Acceptance
s Hidden Gem: The Window to Buy Green Bitcoin at the…
The decision of which cryptocurrencies to accept on darknet markets depends on several factors:
Popularity and Market Demand:
The brutal truth about Bitcoin
The wider adoption and popularity of a cryptocurrency make it more likely to be accepted on darknet markets. Bitcoin’s ubiquity and recognition contribute to its widespread acceptance.
Privacy Features:
Cryptocurrencies that offer enhanced privacy features, such as Monero, are attractive to both vendors and buyers seeking increased anonymity.
Transaction Speed and Cost:
Eventually, the FBI in collaboration with other law enforcement agencies shut down the website and confiscated over $1 billion worth of digital assets. The average number of daily bitcoin transactions has climbed to 224,000 so far this month from around 206,000 last August, according to data from the Blockchain website. Daily trade volume in bitcoin has multiplied rapidly in the last year, climbing to an average of $2 billion so far this month from an average $86.7 million last August, according to CoinMarketCap data. Others like Agora and Evolution filled the vacuum left by Silk Road after it was shut down through the efforts of the U.S. government, though since then, these have also been shuttered. Another influence on price is the amount of the cardholder’s personally identifiable information (PII) that comes with the card, such as street address and phone number.
Bitcoin Cash, with its faster transaction confirmation times and lower fees compared to Bitcoin, appeals to users looking for quicker and more cost-effective transactions.
The Darknet Market Landscape
It is essential to note that the darknet market landscape is constantly evolving. New marketplaces emerge while others shut down due to law enforcement efforts or exit scams. As a result, the range of accepted cryptocurrencies may vary from one market to another.
According to TRM Labs, the exchange sent $125 million to Hydra and received over $170 million from Hydra between 2015 and 2022. All vendors that were surveyed by the researchers still offered Bitcoin as an accepted means of payment. What is more of a surprise though is that Litecoin is the second most accepted coin by the vendors with over 30% of them accepting it as a method of payment. In a separate series of questions in November, SearchSecurity asked Grigg about the overall traceability of Monero.
Technologies and Tools Commonly Used in Dark Web Black Markets
Additionally, certain darknet markets may have specific requirements or restrictions regarding the type of Bitcoin variant they accept. Therefore, users should carefully research the individual marketplace before engaging in any transactions.
In Conclusion
Darknet markets primarily rely on Bitcoin as the preferred currency for illegal transactions. However, some markets also accept alternative cryptocurrencies like Bitcoin Cash and Monero. The acceptance of these cryptocurrencies is influenced by factors such as popularity, privacy features, transaction speed, and cost. It is crucial for users to stay informed about the ever-changing landscape of darknet markets and their accepted cryptocurrencies to ensure safe and anonymous transactions within these illicit online platforms.
