The U.S. investigation was conducted with support and coordination provided by the Department of Justice’s multi-agency Special Operations Division and the Joint Criminal Opioid and Darknet Enforcement (JCODE) Team. By using the blog, you agree that the information on this blog does not constitute legal, financial or any other form of professional advice. No relationship is created with you, nor any duty of care assumed to you, when you use this blog.
The darknet, a hidden part of the internet that requires specific software to access, has gained notoriety for being an underground marketplace where illicit activities take place. From drugs and weapons to hacking tools and stolen data, darknet markets have become synonymous with criminality and anonymity. However, in recent times, users have noticed a significant decline in the availability and accessibility of these underground marketplaces.
Covid is Causing Shipping Issues, But Natural Competitive Forces Are Causing Darknet Market Consolidation
Unprecedented Disruptions
It exists in contrast to the ‘clear net’ most consumers are accustomed to searching through Google. Common uses include non-indexed webpages for online banking, web email, and paywall-protected content. Considering the monthly sales volume by category (Fig. 5), we observed a similar trend for available listings (Fig. 3), with most sales occurring between mid-2014 and mid-2015.
Darknet markets have always operated in a constant game of cat and mouse with law enforcement agencies and cybersecurity experts. However, the recent wave of shutdowns and disruptions experienced by various darknet markets has left many wondering about the reasons behind this sudden turn of events.
Justice Department Investigation Leads to Shutdown of Largest Online Darknet Marketplace
Infiltration and Law Enforcement Operations
One possible reason for the disappearance of darknet markets is the increased efforts of law enforcement agencies to infiltrate and shut down these illegal platforms. Over the years, authorities have successfully dismantled several high-profile marketplaces, leading to arrests and seizures of assets. These operations often involve extensive investigations, undercover work, and collaboration between international agencies.
That final listing matches the site’s theme, which features Walter White from Breaking Bad on the banner. But unlike Walter White’s fictional operation, this one had a global presence, with vendors and buyers stationed all around the world, although most transactions were conducted in English. Following Hydra’s demise, Flashpoint found that a pro-Ukrainian faction had migrated to RuTor, backed by marketplace OMGOMG – aka OMG! – while a pro-Russia faction embraced WayAWay/Kraken, which isn’t affiliated with the legitimate San Francisco-based cryptocurrency exchange of the same name. After discovering the vulnerabilities described in the PoC, the market’s administrators decided to take the website offline for good.
Silk Road
However, it is important to note that while individual markets may be taken down, new ones can quickly emerge, sometimes under different names or on different platforms. It’s a never-ending battle between the authorities and those involved in the darknet ecosystem.
Hackers and Internal Struggles
Another factor contributing to the temporary shutdown of darknet markets is internal struggles within these illicit communities. As the markets grow in size and complexity, they become lucrative targets for hackers aiming to exploit vulnerabilities in their infrastructure or steal user data. In some cases, market administrators themselves may initiate shutdowns due to security breaches or disagreements among participants.
Every Dark Web Vendor is Different
As the Hydra crew will be its operator, its maintenance budget will be coming from criminal activity. If Russian authorities have something to do with it, they would have the possibility of extending their surveillance with this network. So it is possible that it will be another international darknet, but probably made and controlled in cooperation with the Russian intelligence services. According to the announcement, AspaNET can bypass Internet censorship and filtering made by the Chinese Golden Shield Project and the Russian Sovereign Internet.
- “The Department of Justice will not allow darknet markets and cryptocurrency to be a safe haven for money laundering and the sale of hacking tools and services,” Deputy Attorney General Lisa Monaco said.
- The platform takes around 15 minutes to set up and it decreases dark web investigation time by 10x.
- The law enforcement response to the rise of Silk Road and its brethren about a decade ago has mainly focused on trying to shut down the marketplaces and prosecute their operators.
- Team can make the same feature, and profile which of its users are interested in which type of illegal stuff?
Nevertheless, such disruptions are often short-lived, as the demand for underground marketplaces persists and new platforms quickly emerge to meet this demand.
The Impact on Users
For users who heavily rely on the darknet markets for illegal products or services, these temporary shutdowns can cause inconvenience and uncertainty. With their go-to sources offline, individuals may struggle to find alternative platforms, exposing themselves to higher risks in terms of security, trustworthiness, and anonymity.
Moreover, these disruptions also impact those who argue for the potential benefits of the darknet beyond criminal activities. Proponents believe that it can serve as a platform for whistleblowing, secure communication, and privacy protection in repressive regimes. The absence of accessible darknet markets limits opportunities for innovation and lawful use cases that could exist within this hidden corner of the internet.
The Future of Darknet Markets
It employed some harm reduction approaches, such as free telemedicine consultations by a medical professional and selective drug-quality tests. The U.S. Department of Justice estimates that Hydra accounted for nearly 80% of all darknet market-related cryptocurrency transactions in 2021. This announcement from law enforcement, along with the activity on Dream Market, has prompted speculation that, like Hansa, the site has already been seized and is under the control of law enforcement agencies.
While the recent downtimes of various darknet markets have undoubtedly caused some volatility in the ecosystem, it is unlikely that this underground economy will disappear entirely. As long as there is demand for illegal goods and services, new marketplaces will continue to arise, adapting to the evolving landscape of technology and law enforcement tactics.
In conclusion, the reasons behind the current downtime of darknet markets are multifaceted, involving factors such as law enforcement operations, internal struggles among participants, and external threats like hacking. Regardless of these setbacks, the resilient nature of the darknet ensures that it will remain a prominent part of the internet’s underbelly, albeit with constant ups and downs.
