The Fall Of Kingdom Market
Understanding the Darknet Market
The darknet market refers to a part of the internet that is not indexed by traditional search engines and requires specific software, configurations, or authorization to access.
Yet, like the Hydra of Greek legend, whose heads multiply when they are severed, a new generation of darknet markets popped up to challenge for control of a market worth at least $1.37 billion, according to unofficial estimates. “UniCC has been active since 2013, and it has received cryptocurrency payments over that period totaling $358 million across Bitcoin, Litecoin, Ether and Dash,” Elliptic said in a report at the time. “Tens of thousands of new cards were listed for sale on the market each day, and it was known for having many different vendors – with the fierce competition keeping prices relatively low.” Would-be darknet market buyers and sellers can always try to take their business elsewhere – for example, to use encrypted messaging applications.
Vendors on Hydra could set up accounts and openly advertise a wide variety of substances, including cocaine, heroin and LSD, with photographs and detailed descriptions of their wares. Buyers could write reviews and rate each seller on a five-star scale. Vendor ratings and reviews were featured prominently on the platform, according to the indictment. But The Record reported that BlackSprut is known for backing the Kremlin and supported Russia’s invasion of Ukraine.
These markets operate on the dark web, a segment of the internet that is intentionally hidden from the public and requires special tools, such as Tor or I2P, to access.
On April 5, German authorities announced the takedown of the Hydra marketplace, the world’s largest darknet market trading in illicit drugs, cyberattack tools, forged documents and stolen data. The criminal operation, with about 17 million customer accounts, raked in billions in bitcoin before getting shut down. Prosecutors said the marketplace enabled users, mainly in Russian-speaking countries, to buy and sell illegal drugs, stolen financial data, and fraudulent identification documents, including U.S. passports and drivers licenses. The site also offered money-laundering services, court documents said. While the study is based on historical data, we showed that examining dark market counterfeits in more detail can contribute to our understanding of the counterfeit market. With an increasing emergence of darknet markets and single vendor shops, offers of counterfeits are also likely to increase.
Key Features of the Darknet Market
With the rise of the internet, it has become much easier to conduct transactions online. Credit cards have become an essential part of our lives, and they are used for everything from online shopping to booking flights. However, with the increase in credit card usage, there has also been an increase in credit card fraud. Darknet markets have become a hub for the illicit trade of credit card data. Hackers and cybercriminals have developed sophisticated methods for obtaining credit card data, which they then sell on these markets. If you ignore the markets that only allow for the sale of illicit drugs, there are still 32 darknet markets currently operating!
They accounted for 3.3% of worldwide trades in 2016, having an estimated value of $509 billion in the same year. Estimations in the literature are mostly based on border seizures, but in this paper, we examined openly labeled counterfeits on darknet markets, which allowed us to gather and analyze information from a different perspective. Here, we analyzed data from 11 darknet markets for the period Jan-2014 and Sep-2015.
- Anonymous Transactions: One of the primary reasons users flock to darknet markets is the demand for anonymity. Cryptocurrencies like Bitcoin are often used for transactions.
- Diverse Listings: A range of goods and services can be found, ranging from legal items to illegal substances.
- Vendor Ratings: Users can rate vendors, fostering a system of accountability and trust among buyers.
- Escrow Services: Many darknet markets employ escrow systems to protect both buyers and sellers, ensuring that funds are only released when both parties are satisfied.
However, Sannikov said that companies should pay more attention to the dark web because it can be a harbinger of threats to come — or offer clues to breaches or attacks that are already in progress. The same goes for malware; Shier said most of the malicious code being sold and traded on the dark web can be found on the public web as well. “It tended to be very civil, very high-level discussions and now, you’ve got every man and his dog on there. It’s very much like Reddit or 4chan or those sorts of things where there’s a lot of noise to get to the gold.” I remember back in 2015, a few days after my first experience with MDMA, a good friend of mine who had acquired the M told me he obtained it online. Analysis and insights from hundreds of the brightest minds in the cybersecurity industry to help you prove compliance, grow business and stop threats. On its website, the Federal Criminal Police Office (BKA) stated it had secured and closed Hydra’s server infrastructure.
More than a drug bust, this takedown dealt a massive blow to the malicious Russian-speaking dark web ecosystem. These marketplaces are a part of a long list of active markets that are gaining momentum, audiences, and illegal activity every day. We tried to represent the wide range of marketplaces that exist within this list. The languages that are listed are only an indication of the language the marketplace is using rather than an indication of its origin or the nationality of its admins. Dark markets, as well as various other services within darknets, are hosted as ‘hidden services’. This means that the servers providing these services are only accessible via Tor and do not have a public IP address or domain name.
Types of Products and Services Available
On the darknet market, products can generally be categorized into the following types:
- Illegal Substances: This includes drugs, weapons, and counterfeit goods.
- Hacking Services: Users may hire hackers for various activities ranging from data breaches to personal account hijacking.
- Personal Data: Stolen credit card information, identities, and login credentials are frequently listed.
- Legal Products: Some markets also sell items such as books, art, and electronics.
- In 2013, the FBI shut down a dark web marketplace called Silk Road, founded by a young man in Texas named Ross Ulbricht.
- Keep in mind that we don’t recommend our readers visit dark web marketplaces themselves.
- This material is for informational purposes only, and is not intended to provide legal, tax, financial, or investment advice.
- Lastly, we evaluate the monetary value of offered and sold counterfeits and the generated sales volume of vendors.
- In Georgia, on its southern border, where more than 100,000 Russians have fled, there is Matanga, a local Russian-speaking darknet market offering the same “treasure hunt” buying system as back home.
Risks Associated with Darknet Markets
Engaging with the darknet market carries several risks, including:
- Legal Consequences: Purchasing illegal items can lead to serious legal repercussions, including arrest and prosecution.
- Security Threats: Users may expose themselves to malware, phishing attacks, or scams.
- Unreliable Quality: The quality of products and services can vary significantly, with no guarantees of satisfaction.
FAQs About the Darknet Market
What is the purpose of the darknet market?
The primary purpose is to facilitate the exchange of goods and services, often for items that are illegal or hard to obtain through conventional channels.
How do you access the darknet market?
Access typically requires the use of specific browsers like Tor, along with appropriate precautions to ensure user anonymity.
Are all darknet markets illegal?
While many darknet markets facilitate illegal activities, some may offer legal goods. However, the majority are associated with illicit transactions.
How can users protect themselves on the darknet market?
Users can take several steps, including:
- Using a VPN for additional privacy.
- Engaging only with reputable vendors.
- Employing strong cybersecurity practices to avoid malware.
In summary, the darknet market represents a complex segment of the internet characterized by a vast array of commodities and services, steeped in controversy and risk. As such, understanding its dynamics and the associated dangers is crucial for anyone considering participation in this hidden world.
