DM For Details: Selling Drugs In The Age…
Understanding the Shutdown of Darknet Markets
The recent trend of darknet markets facing shutdowns has raised numerous questions among users and observers alike. Why are all the darknet markets down? Let’s explore the factors contributing to this phenomenon.
Unlike Ulbricht, a politicised tech-savant, Speedsteppers is no ranting libertarian. If loose lips sink ships, Speedsteppers has captained this outlaw fleet with silent aplomb. His or her ideological motivations remain a mystery, beyond the acquisition of bitcoin, gained through a percentage commission charged on each sale.
That’s why the defense is the best offense, so it’s worthwhile to be leveraging a service that monitors your personal data for you. If you’ve confirmed that your personal information is leaked on the Dark Web, you have an elevated risk of identity theft and financial fraud. That’s why family identity theft protection and financial fraud protection are key security layers needed to keep your life safe and secure. Ross Ulbricht received two sentences of life in prison, along with three other convictions. The U.S. government seized over $1 billion worth of bitcoin throughout the entire takedown operation and the decade following it.
Even so, opioids such as black market methadone are still being bought outside of darknet markets, predominantly either hand-to-hand or via the many human and automated drug dealers selling their wares on the encrypted messaging platform Telegram. The following month RuTor retaliated, hacking WayAway and posting screenshots of the breach, arguing that WayAway’s security was too weak to be trusted. Days later RuTor was targeted for another round of cyber attacks, this time by Killnet. Amid the cyber warfare between those vying to succeed Hydra, Russia’s drug trade, most of it orchestrated via darknet marketplaces continues almost in plain sight. Organizations and individuals should use a password manager to suggest and store passwords to reduce password reuse (which increases attacker access in a credential hacking attack).3. Once your information is out there, you will likely experience more frequent social engineering attacks and these attacks will likely include more personalized information.
But still, as Professor Décary-Hétu points out, darknet markets are a tough business, and the dwindling number of markets suggests that not all of those standing today will survive. With these latest developments, overall darknet market revenue for 2020 has surpassed that of 2019, with one month left to go. But while total revenue may not change, other numbers indicate that tough times could be ahead for darknet markets. Starting around May, darknet market revenue returned to its previous state, no longer shifting in sync with Bitcoin’s price. Since then, darknet markets’ monthly revenue has steadily grown, save for small drops in September and November, which largely fall in line with seasonal trends.
Key Reasons Behind the Shutdown
Brian Dumps, the biggest overall fraud shop for the year, also appears to have suffered a disruption as its revenue fell almost to zero in October, though it’s unclear exactly why. Since Silk Road gained global publicity as the largest darknet marketplace between 2011 and 2013, a wide range of research regarding such marketplaces has been done. In [14] Me and Pesticcio analyze 14 Tor marketplaces and derive connections between those by identifying PGP keys used by vendors in multiple marketplaces. Georgoulias et al. investigate 41 marketplaces and 35 vendor shops and also analyze discussions within forums of those marketplaces in [10].
Although watches, jewelry, cosmetics, and electronics were also within the top 17 affected categories, they seem to be less prominent than on dark markets and attracted fewer investigations by TS (Table 5). The differences observed for Tobacco, Footwear, Electronics, Clothing, and Watches, are further examined in the Discussion section. The payment transaction is an essential element of online shopping for several reasons. When using an on-demand interface, the speed and simplicity of the payment transaction can make or break a sale (Ilmudeen, 2019). On most legal web markets, offline and online payment alternatives are available to customers.
New law enforcement approaches could be critical in curbing the growth of online drug trafficking, especially with the opioid epidemic sweeping from rural landscapes into suburban ones — where more people are presumed to be using the darknet. It’s a risky business buying illegal drugs, and more people are turning to the dark web to do so. Garantex is a large cryptocurrency exchange based in Russia that we’ve discussed previously in our research due to its role in money laundering. In fact, Garantex is the biggest service we covered in our 2022 Crypto Crime Report section on money laundering carried out by cryptocurrency businesses headed in Moscow City, the financial center of Russia. Although OMG became active in July 2020, its deposit volumes were so low that it was more of a personal operation than a darknet market. However, the platform recorded high inflows as soon as Hydra went down, most of which came from Hydra counterparties.
Several critical reasons explain the widespread closures of darknet markets:
- Law Enforcement Actions: Coordinated operations by international law enforcement agencies have resulted in the takedown of many prominent darknet platforms.
- Increased Regulation: Governments around the world are implementing stricter controls on cryptocurrencies, which are often used in these markets, increasing the risks for operators.
- Security Issues: Many darknet markets suffer from security breaches, leading to loss of funds or customer data, which can result in a loss of trust and subsequent shutdown.
- Market Saturation: The proliferation of various darknet markets has diluted user trust and made it increasingly difficult for individual markets to sustain operations.
- Exit Scams: Operators of some darknet markets may execute exit scams, disappearing with users’ funds and subsequently shutting down the platform.
The Impact of Shutting Down Darknet Markets
The decline of darknet markets has significant implications:
- Reduction in Availability: Users find it increasingly difficult to access various illegal goods and services that were previously readily available.
- Pushing Users to Alternative Platforms: As traditional darknet markets shut down, users may seek out less reputable platforms, which can lead to greater risks.
- Price Volatility: The closure of markets can cause price fluctuations in illegal goods, affecting supply and demand.
- Increase in Criminal Activity: Users might resort to more dangerous and less reliable means of acquiring goods, increasing the potential for scams and violent encounters.
Future of Darknet Markets
The future seems uncertain for darknet markets, as factors continue to evolve:
- Resilience: Some markets may emerge again under new names or improve security measures to evade law enforcement.
- Decentralization: The rise of decentralized platforms could pose challenges to authorities, making it harder to shut down these markets.
- Technological Advancements: Developments in privacy technology and cryptocurrencies may provide new avenues for relaunching darknet markets.
FAQs
Q: Are all darknet markets permanently closed?
A: While many have faced shutdowns, new markets can emerge. The situation remains fluid.
- In fact, this year’s decline in active markets follows a period of sustained growth in the number of active markets from 2018 through February 2020.
- Since the demise of Silk Road, numerous markets have emerged on the dark web for transactions of hacked passwords, stolen credit cards, compromised accounts, money laundering and fraud-related services.
- “More and more people are aware of the ease of accessing them, and we are seeing the number of users rise quite dramatically,” said Dana Haynie, professor of sociology and director of Ohio State’s Criminal Justice Research Center.
- One of the site’s unique features was something called “dead drop,” where clients had the option to pick up products from sellers or predetermined spots.
Q: What should users do if they relied on darknet markets?
A: Users should exercise caution and consider the risks associated with seeking alternatives.
Q: Can law enforcement completely eliminate darknet markets?
A: While law enforcement can disrupt operations, the decentralized nature of the internet poses ongoing challenges.
Q: Is it safe to use the dark web now?
A: Caution is advised. Users should be aware of the risks, including scams and legal repercussions.
To adequately address the question of why are all the darknet markets down, one must consider a complex interplay of law enforcement efforts, user behavior, and technological advancements. The situation is continually evolving, suggesting that while many markets may be down, the underlying issues remain in constant flux.
