LMG Security Staff Writer
Understanding the Global Enforcement Efforts Against Darknet 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. Notably, the Darknet Marketplace and Digital Currency Crimes Task Force isn’t the only unit focusing on crypto-related crimes. The FBI established a Virtual Asset Exploitation Unit in 2022, and the Justice Department has a National Cryptocurrency Enforcement Team that has been around since 2021. Furthermore, the Securities and Exchange Commission (SEC) significantly expanded its Cyber Unit last year, reflected by its recent crackdowns on the crypto industry.
The rise of darknet markets has posed significant challenges for law enforcement agencies around the world. With the anonymity provided by the dark web, these markets facilitate the trade of illegal goods and services, including drugs, weapons, and stolen data. As a result, many police agencies are ramping up their efforts to combat these illicit activities.
However, cryptocurrencies are traceable to varying degrees; for example, Bitcoin is easier to trace than Monero (Bahamazava & Nanda, 2022). Finally, immediate feedback on the payment outcome adds an ultimate confirmation to the customer regarding the payment. Overall, law enforcement’s efforts to take down darknet markets are ongoing and continue to evolve as these black markets become more sophisticated.
U.S. and Europol officials noted that online drug dealers often use multiple venues. The change in tactics netted a record number of arrests for the operation, beating the 150 arrested following the takedown of DarkMarket, and 179 following the takedown of Wall Street Market. 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. “We handled it the best possible way, due to the severity of the issue,” DeSnake says. “Drug traffickers who are hiding in the darknet will be aggressively targeted and unmasked by this task force.”
How Many Police Agencies Are Involved?
Ulbricht built this black market bazaar to exploit the dark web and the digital currency Bitcoin to allow users to conduct illegal business beyond the reach of law enforcement. According to the DOJ “Ulbricht’s arrest and conviction – and our seizure of millions of dollars of Silk Road Bitcoins – should send a clear message to anyone else attempting to operate an online criminal enterprise. The supposed anonymity of the dark web is not a protective shield from arrest and prosecution.
To some extent, we must conduct more studies to fully comprehend the trend, patterns, and related impacts of the darknet marketplaces faced by all darknet users (vendors and buyers) and law enforcement agencies. This section shares some specific recommendations for future directions based on the above six RQs with the relevant findings of this paper. The target group of the research, composed of potential customers, ranked the reliable delivery of goods (TF 18) as the most important trust factor when buying illicit drugs on the darknet. This result is in line with the findings of a wide range of previous research, claiming that the highest risk of the online drug purchase process is in the delivery and receipt stage (Bancroft & Reid, 2016; Espinosa, 2019; Jardine, 2021; Lorenzo-Dus & Di Cristofaro, 2018). Although this survey study was not conducted among actual darknet market users, our findings and its extensive support by previous literature suggest that delivery issues indeed drive the recent stall in the volume of the darknet drug trade. Furthermore, examining the postal and other delivery services, including packet inspection methods and delivery protocols, could facilitate the evidence-based re-evaluation of delivery regulations and could ultimately affect customers’ decisions.
That’s certainly one strategy for dark web monitoring, but it can be inefficient, time-consuming, and lacks coverage for other marketplaces. Furthermore, other value-driven security tasks are likely to suffer when teams have to manually browse these marketplaces and hunt for threats or signs of your digital footprint. The emergence of Telegram as a new dark web frontier also partly explains the revenue reductions in traditional dark web marketplaces.
The takedown on Tuesday of Genesis Market, a 5-year-old criminal marketplace described by officials as an “initial access broker,” offers a window into this type of cyber-criminal activity. A recent surge in ransomware attacks and other malicious cyber activities has fueled the effort to shut down services that cater to online criminals. Vendors and buyers are already surveying the remaining markets and deciding which ones to shift their business to. Hydra Market, which started operating on the encrypted and anonymous dark web in 2015, made up 80% of darknet sales and brought in about $5.2 billion in cryptocurrency, according to the U.S. Hydra’s servers were seized in Germany by police there Tuesday morning in coordination with U.S. law enforcement.
While it is difficult to pin down the exact number of police agencies actively working against darknet markets, several international, national, and local law enforcement bodies have taken significant steps to address this issue. Here are some key points:
- International Cooperation: Agencies such as Interpol and Europol collaborate with member countries to conduct joint operations against darknet marketplaces.
- National Agencies: Each country may have its own specialized units. For example, the FBI in the United States has a Cyber Crime Division dedicated to investigating online illegal activities.
- Local Police Departments: Many local law enforcement agencies are also engaged in operations targeting illicit activities linked to darknet markets.
It seized 50.8 million euros ($53.4 million) in cash and virtual currencies, 850 kilograms of drugs, and 117 firearms were seized in a series of raids in several countries. 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. Although eight of the darknet markets active in 2018 closed in 2019, eight new ones opened, keeping the total number of active markets steady at 49. On average, each active market in 2019 collected more revenue than those active in any other year, apart from during the height of Silk Road’s heyday in 2012 and 2013. As we’ll examine in more detail later, it appears that when some markets close, others are able to pick up the slack and satisfy customer demand.
Major Operations Against Darknet Markets
- Operation SpecTor was a collaborative initiative across JCODE members, including the Department of Justice, FBI, DEA, USPIS, HSI, IRS-CI, ATF, Naval Criminal Investigative Service (NCIS), and the FDA’s Office of Criminal Investigations.
- A source is a journal article published in one or more documents in our bibliographic collection.
- A credit score report is an analysis report of the credit worthiness of an individual and the credit score depends on the credit files of a person.
- Thus, if two needs were rated of highest importance, one would be assigned a higher priority than the other if a law enforcement commitment to fulfilling that need had a perceived higher likelihood of success than committing to the second need.
- For example, two months ago a Russian national was arrested in Arizona for allegedly deployed LockBit, Babuk, and Hive ransomware.
- The market now has an established reputation among cybercriminals, which means that any stolen credentials for sale on there are likely to provide valid access to systems, services, or apps.
Numerous high-profile operations have showcased the unified effort by law enforcement agencies globally. Some notable operations include:
- Operation Disruptor: A coordinated effort involving the FBI, Europol, and other agencies that led to multiple arrests and the dismantling of major darknet sales platforms.
- Operation Bayonet: This resulted in the seizure of the notorious darknet marketplace AlphaBay in 2017, showcasing strong international cooperation.
- Operation SaboTAGE: Focused on targeting vendors involved in drug trafficking on the dark web, this operation highlighted the effectiveness of cross-border collaboration.
Challenges Faced by Law Enforcement
Despite the increasing efforts to tackle darknet markets, law enforcement agencies encounter several challenges:
- Anonymity: The inherent anonymity of the darknet complicates the identification and apprehension of criminals.
- Legal Jurisdictions: The global nature of the internet means that operations often cross multiple jurisdictions, which can slow down or hinder law enforcement efforts.
- Encryption Technologies: Criminals use advanced encryption technologies to conceal their identities, making monitoring and investigation difficult.
FAQs
What is a darknet market?
A darknet market is a platform accessible through specialized software where users can buy and sell illegal goods and services, often using cryptocurrencies for enhanced privacy.
How do police investigate darknet markets?
Police agencies employ a variety of tactics, including undercover operations, digital forensics, and intelligence-sharing among international partners to identify and apprehend offenders.
Are all law enforcement agencies involved in combating darknet markets?
Not every agency is involved, but many countries have dedicated cybercrime units that focus on investigating and dismantling darknet markets and related criminal activities.
Conclusion
The battle against darknet markets involves concerted efforts from a myriad of police agencies worldwide. With ongoing investigations and operations, law enforcement is working hard to dismantle these illicit platforms. As technology evolves, so too will the strategies employed by police agencies to combat the growing threat posed by darknet markets.
