Categorizing Counterfeits
Understanding the Situation: Why Are All the Darknet Markets Down?
The marketplaces are typically built like large web shops with many different product categories, ranging from pharmaceuticals and drugs to stolen credit card data, botnet rentals, or fraud tutorials. Alpha Bay – The Alpha Bay marketplace was shut down by law enforcement in conjunction with Operation Bayonet. AlphaBay was the largest darknet market totaling about 40,000 vendors and 200,000 customers and estimates suggest about ten times bigger than Silk Road. The founder of the site, Alexandre Cazes, was connected to the site and arrested by the authorities because the original welcome message on Alpha Bay in 2014 included Cazes personal email address. Notably, a 2008 post on an online tech forum authored by someone using the moniker Alpha02 also included the same email address, and the name Alexandre Cazes. Dark Web Markets (DWMs) are the markets on the dark web that are used to access illegal products and services.
However, as long as these actors are not apprehended, the market seems to be able to heal itself and adapt. Apart from mixers and cashout services that assume new identities, new mixing services, such as “Sinbad”, used by North Korea’s Lazarus Group, also appear. 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. However, these developments do not mean a complete departure from darknet markets, or DNMs. Nevertheless, as long as these actors avoid arrest, the general darknet market landscape appears to be capable of healing itself.
The v3 address utilizes SHA3/ed25519/curve25519 cryptography which is considerably more secure than v2’s SHA1/DH/RSA1024 address encryption. The v2 addresses have been the standard for 15 years and the network overdue for a more secure mechanism to become standard. – DarkOwl Vision has knowledge of Nemesis market since fall of 2021, and their market launch page claims they have been operational since May 2021. The subdreadit for the market, /d/NemesisMarket has been banned for rules violations, suggesting this market may have been run by scammers. Versus Market, a popular market throughout 2020 and offline since early November after enabling DDoS protection, also suddenly reappeared operational without any announcement of their return.
Now, you can also explain to others how their shared Netflix password exposes them to fraud, or why the Dark Web is not just for criminals but also for dissidents and other people fighting for legitimate ideals. Despite its menacing name, the Dark Web is not illegal per se, nor is it unlawful to access it. However, the undeniable fact is that most of the activities that happen on the Dark Web are related to criminal actions.
The darknet has long been associated with illicit activities, serving as a platform for the trade of drugs, weapons, and stolen data. Recently, many users have been asking, “why are all the darknet markets down?” This article delves into the reasons behind the apparent shutdown of these markets.
Line officers need to develop awareness of the types and scope of illicit dealings on the dark web. Participants pointed to the potential of new state task forces, which could share data, across organizations and jurisdictions, on the dark web. Rapid Changes in Volume of Use — Law enforcement sees evidence of a steady expansion of dark web activities but largely lacks quantitative data to inform effective responses and solutions to dark web activities.
- Following the demise of Hydra Market in 2022, dozens of new darknet markets emerged – a number of these being darknet drug markets which targeted former Hydra customers and vendors.
- DeSnake, meanwhile, maintained both on Dread and to WIRED that he doesn’t have any personal or professional connection to threesixty, the hacker whose vulnerability discovery took down AlphaBay’s largest remaining competitor.
- Launched in February of 2018, Empire rose to become the largest darknet market in the Western world during its time.
- The vendors openly advertised their drugs on Hydra, typically including photographs and a description of the controlled substance.
Possible Reasons for the Shutdown
Several factors could contribute to the closure of darknet markets:
Rather, it’s probable that the large influx of new users from Empire and their deposits made Icarus ripe for a profitable exit. As a result, the admins may have taken advantage of the opportunity and exited sooner than they had originally planned. One newish market, Wall Street, has been steadily adding 100,000 users every day for the last week, and now has over one million registered customers. User feedback threads below drug offerings on Wall Street show that for now, it’s business as usual. The site has been running for a few years, and dozens of the biggest vendors – some from the original Silk Road – have set up shop there. One theory popular among twitchy forum posters right now is that the DEA or FBI have been running Dream for months, looking for slipups, monitoring large in and outflows of bitcoin, and are using technology to unmask users, buyers and operators.
- Law Enforcement Actions: Authorities worldwide have increased efforts to crack down on illegal online activities. Major operations have targeted prominent markets, resulting in arrests and seizures.
- Management Issues: Many darknet markets are run by anonymous individuals or groups who may face operational difficulties, leading to sudden shutdowns.
- Increased Security Concerns: Users may leave markets due to a lack of trust stemming from hacks or scams. This can drive many markets to close their operations to avoid losing their user base.
- Market Saturation: The proliferation of numerous darknet markets could dilute user engagement, making it hard for existing platforms to sustain themselves.
On its website, the Federal Criminal Police Office (BKA) stated it had secured and closed Hydra’s server infrastructure. Bitcoins amounting to about $25 million were seized, which were attributed to the Hydra marketplace. This expansion was driven by a steady increase in international sales, which grew to outnumber domestic New Zealand sales by early 2022. After a steady period where there were, on average, 255 listings across 2020 and 379 across 2021, another period of growth happened in early 2022. This saw over a thousand products being listed on Tor Market by mid-2022 (see graph below).
Impact of Darknet Market Shutdown
The closure of darknet markets can have significant consequences:
- Users: Buyers and sellers may lose access to previously available goods and services, prompting shifts to alternate markets or forums.
- Criminal Organizations: A closure can disrupt supply chains, forcing these organizations to adapt and possibly escalate their operations.
- Law Enforcement: Successful shutdowns can bolster law enforcement agencies’ confidence and may lead to more extensive investigations into cybercrime.
Commonly Asked Questions
What are darknet markets?
Darknet markets are websites that operate on the dark web, allowing users to buy and sell illegal goods and services anonymously.
How do users access darknet markets?
Users typically access darknet markets through specific browsers like Tor, which anonymizes their internet traffic.
Are all darknet markets down for good?
Not necessarily. Some markets may reopen after periods of inactivity due to management or law enforcement pressures, while others may close permanently.
What should users do during these shutdowns?
Users should exercise caution and consider legal implications if they choose to seek alternatives, as many forums or platforms may present scams or additional risks.
Conclusion
The question, “why are all the darknet markets down?” highlights the complex interplay of law enforcement, market dynamics, and user trust within the dark web. Understanding these factors provides insights into the nature and challenges of operating in such an environment.
