Understanding the Shutdown of Darknet Markets
The question “why are all the darknet markets down” has become increasingly common among those who follow online illicit activities and the cryptocurrency space. Recent months have seen a wave of temporary or permanent take-downs of these platforms, leading to confusion and speculation among users and observers alike.
The Rise and Fall of Darknet Markets
Last week, a hacker exposed the marketplace’s poor security by leaking a PoC on how to access the file system of the site’s server on Dread, a darknet social media space. When dark net markets are shut, their users typically move quickly to new markets. AlphaBay, the largest so-called dark net market, was taken down in early July at the same time the authorities arrested the reported founder of the site, Alexandre Cazes, a Canadian man who was living in Bangkok. This website is using a security service to protect itself from online attacks.
Similarly, the number of active markets has fallen significantly, with several prominent ones shutting down and fewer new ones popping up to take their place. The darknet, the hidden part of the internet that can only be accessed by a special browser, has long been home to various criminal marketplaces and forums. And over the last 9 months, using a mix of publicity stunts and crippling cyber attacks on each other, OMG, Kraken and around 10 other darknet markets have been engaged in a tit-for-tat turf war for Hydra’s throne.
- In the face of increasing law enforcement activities, cyber criminals are increasing their security accordingly rather than exiting the cybercrime business.
- Mega received nearly $40 million in March 2023, followed by Blacksprut with around $20 million.
- Tor project removed v2 introduction points with Tor version 0.4.6, but the effects are only realized for relay operators that updated their node with the latest software version.
- But rather than shutting down the site immediately, they then continued to run it for a month, all the while collecting information about vendors and customers.
- “The war has widened the splits in the cybercrime underground,” Ian Gray, director of analysis and research at Flashpoint, told Information Security Media Group.
- One site alone generated an estimated $219 million in annual revenue as of 2017, according to a new NIJ-supported report by the RAND Corporation (RAND).
Trust Factors And Hypotheses
Darknet markets have been notorious for allowing the exchange of illegal goods and services, from drugs to hacking tools. However, their operation is fraught with challenges that can lead to their closure.
While not the biggest dark web marketplace for hackers, it’s still not a bad idea to monitor this site due to its continued growth. Dubbed by security researchers as the largest marketplace for mobile malware, InTheBox is a relatively new site that came online in early 2020. InTheBox features over 400 custom “web injects” that threat actors can buy and use to hack into different mobile apps and services. Like hacker forums, critical data such as VIP credentials, employee data, and espionage information are sold in dark web markets as well. Much of the decline was attributed by researchers at blockchain analysis firm Chainalysis to the shutdown of Hydra Market, which was taken down by law enforcement agencies in Germany and the U.S. in April 2022.
Darknet marketplaces are usually found in Tor1, the most popular darknet today. Many marketplaces do not last long before they either suddenly shut down – usually performing an exit scam – or are taken offline by law enforcement agencies. In recent years, very popular marketplaces like Dream Market, AlphaBay, Hansa market, or Wall Street Market went offline, but others quickly took their spot as users looked for alternatives. Sometimes new iterations of closed marketplaces showed up again after a while using the same name and sometimes operated by the same individuals as before.
After all tasks were completed (i. e. the task queue was empty), the workers were shut down, ending the acquisition process. Figures 2a and 2b show examples of a product offer and a vendor page in the marketplace. In this paper we do not address a specific darknet in general, but a selected marketplace. Our goal was to efficiently acquire and store data about the marketplace in order to perform extensive analyses of the data later. Testing the first hypothesis highlights whether there are similarities or differences in the process of legal and illegal online shopping. Based on the answers to the related questions, we can highlight the most important trust factors in illegal trade.
Background research tasks included learning from past drug lords, researching legal matters, studying law enforcement agency tactics and obtaining legal representation. Patterns recommended to avoid include hiring hitmen like Dread Pirate Roberts, and sharing handles for software questions on sites like Stack Exchange. Alternatively, site administrators pull off opportunistic exit scams and abscond with cryptocurrency held in accounts. Since 2015, Hydra Market has received about $5.2 billion in cryptocurrency for transactions on the site, reaping commissions worth millions of dollars on those sales, the DOJ said. In July, Tor Browser began displaying a “deprecated soon” warning message every time a v2 onion service was accessed. Since mid-October, instead of the warning page, the Tor Browser client logs records numerous [WARN] messages when the client accesses a legacy v2 onion service, despite displaying the website contents in the browser.
Nation-state actors, too, leverage darknets for espionage and cyber warfare, capitalizing on the obscurity and untraceability they provide. While the above-mentioned examples of interventions effectively reduced the volume of the darknet drug trade, the policy recommendations presented above were designed to be implemented among potential customers. Since some users purchase on the darknet because they do not want to risk a personal meeting with dealers, darknet markets extend the range of potential users (Pergolizzi et al., 2017). While these users might be deterred from purchasing drugs, the effectiveness of influencing the risk perception of actual darknet market customers who may be addicted drug users is questionable. Furthermore, deterring drug users from the darknet could lead to them buying drugs on the streets, which could be more dangerous from a health perspective. Drugs on the darknet have a better reputation regarding cleanliness (Bancroft, 2017; Munksgaard et al., 2022), and some form of harm reduction also derives from the communities formed around darknet markets (Aldridge et al., 2018; Szigeti et al., 2023).
In light of recent busts, however, dark web operators have increased their vigilance and are scrutinizing applicants more thoroughly. These days, you often have to pass stringent verification and vetting processes to join a forum. Admins may require references from other members or verification tokens from other trusted forums. Some forums and dark web marketplaces now require a substantial cryptocurrency down payment to even get access to their services. In the face of increasing law enforcement activities, cyber criminals are increasing their security accordingly rather than exiting the cybercrime business. Darknet marketplaces hosted as onion services provide technical anonymity for the participants.
Some key factors contributing to the decline of these platforms include:
- Law Enforcement Actions: Authorities around the globe have increased their efforts to dismantle darknet markets. Operations like Operation Disruptor in 2020 highlight a coordinated crackdown on such activities.
- Security Vulnerabilities: Many darknet markets suffer from technical issues or security flaws, making them susceptible to hacks and scams. This can result in loss of funds and user trust.
- Hostile Environment: Continuous monitoring by law enforcement agencies and cybercriminals creates a hostile environment for market operators, leading some to cease operations voluntarily.
- Payment Processing Issues: Changes in cryptocurrency regulations and the potential for transaction tracking can deter users, leading to a decline in market activity.
Commonly Asked Questions (FAQs)
Why have specific darknet markets disappeared?
Markets may vanish due to law enforcement interventions, exit scams by operators, or voluntary shutdowns in the face of legal and operational challenges.
Are darknet markets permanently down?
While some markets may be permanently shut down, others often re-emerge under different names or on new domains. However, this does not eliminate the risk associated with using these platforms.
How do users react to the shutdowns?
Users may turn to alternative markets or forums, seeking safer spaces to conduct transactions. However, this often involves greater risks as new platforms may not have established trust among users.
The Future of Darknet Markets
Despite the ongoing challenges, the interest in darknet markets shows no signs of waning entirely. As long as there is demand for anonymous transactions, these platforms will likely continue to evolve.
Key considerations for the future include:
- Evolving Technologies: Advances in encryption and anonymization tools may give rise to new markets that are more difficult for law enforcement to infiltrate.
- Changing Legal Landscapes: As governments adapt to the digital age, changes in legislation surrounding cryptocurrencies and online transactions can have profound impacts on the operation of darknet markets.
In summary, the inquiry “why are all the darknet markets down” reflects a complex landscape influenced by law enforcement, technological issues, and user dynamics. As this environment evolves, so too will the platforms that inhabit it.
