Compared to a few years ago we hear less about the Dark Web but what is the situation today? Is the market still thriving? Or is it something rooted in the past? Today I will focus on what has happened in recent years. At the end of 2023 there were 2.7 million daily users and over $2 billion in illicit activity was exchanged.

THE CLOSURE OF HYDRA MARKET (2022)
Certainly the most important event of recent years was the closure of Hydra Market in 2022 (the largest illegal trafficking market in the world). The market had been active since 2015. We are talking about 19,000 sellers and over 17 million registered users. Thanks to a joint operation between the FBI and the German police, 23 million dollars in BTC were also seized. This closure (as happened in the past for Silkroad, Dream Market, Evolution, Alphabay, Empire Market) destabilized the market but activity quickly resumed elsewhere. Hydra managed 93% of all traffic on the Dark Web in 2022. OMG, Blacksrupt and Mega immediately shared part of the users. Particularly after the closure of Hydra, OMG began to experience a high influx of revenue, much of which came from Hydra.

Blockchain analysis suggests that Hydra administrators may have been involved in the development of OMG. The two markets also have many operational similarities, such as location-based courier service (GPS). These technical similarities suggest a link to Hydra. OMG also sends large sums of cryptocurrency to the same group of deposit addresses on an unregulated exchange widely used in Russia.
The overlap suggests that the accounts may be controlled by the same people, which would suggest further adhesions at the level of vendors and perhaps even administrators. Both Blacksprut and Mega also sent funds to the same exchange, but with lower volumes than OMG. There is no definitive evidence to confirm that any of the creators or administrators of OMG are formally associated with Hydra.

Do you know the legend of Hydra? Monstrous multi-headed mythological creature (heads that were reborn if cut off...becoming increasingly stronger).

ARREST OF THE EMPIRE FOUNDERS (2024)
In mid-June 2024, two men were charged with operating Empire Market, facilitating more than $430 million in illegal transactions between 2018 and 2020. Thomas Pavey, known as "Dopenugget," and Raheim Hamilton, known by the aliases " Sydney" and "Zero Angel". Empire disappeared into thin air with an exit scam in September 2020.
According to the charges, Dopenugget and Zero Angel used Empire Market to facilitate more than 4 million transactions, grossing more than $430 million. The charges against them include five counts: conspiracy to sell counterfeit U.S. currency on AlphaBay, international drug trafficking, possession of unauthorized access devices, sale of counterfeit currency on Empire and money laundering.
If convicted on all charges, the two could receive life in prison. The US Department of Justice has already seized $75 million worth of cryptocurrencies, as well as cash and precious metals, during the investigation.

OTHER MARKETS MISSING
On Nightmare Market there was an exit scam in 2019 (user funds were all stolen), Apollon suddenly closed in 2020 with around 20 million dollars stolen (sellers and customers found their accounts blocked), Alphabay (born on the ashes of the well-known historical market closed in 2017) closed suddenly in February 2023 (it is said that one of the founders, DeSnake, died in the 7.8 magnitude earthquake that hit Turkey in 2023. In reality there are no certainties and since then there has been no information about him nothing further was known). Other exit scams: Sheep, Bohemia, Tor2Door.

DATA BREAKS
There have been several incidents of data theft involving the personal information of millions of users over the past 3 years:
-Weee!: 1.1 million customers had their data exposed, although no payment information was compromised​

-TMobile: 37 million customers have had their data compromised, with intruders active since November 2022​

-Twitter (X): data of 200 million users was sold on the Dark Web, despite the vulnerability having been fixed in January 2022​

WHAT IS THE CURRENT SITUATION?
Today's situation sees the market dominated (in terms of volumes and transactions):

-STYX Market (launched in 2023 and based on financial crimes), Mega Darknet Market (widely used in Russia), Kraken Market (also used in Russia), Abacus Market (launched in 2021), ASAP Market (used in the East), Russian Market, Cypher Marketplace (dating back to 2019), MGM Grand Market, BidenCash (based on personal data, SSH credentials and other financial crimes), BriansClub (active since 2014), Torzon Market (with a revolutionary feedback system), 2easy (based on personal data)

New markets have implemented advanced security measures, such as multi-factor authentication (MFA) and encrypted communications, to protect users and improve anonymity. Some markets have integrated with communication platforms such as Discord and Telegram, making it easier for cybercriminals to connect and exchange information. In addition to traditional products, there is a growing demand for digital products, including stolen data, hacking tools and specialized services such as Ransomware As A Service (RaaS)​.

CRYPTOCURRENCIES USED
The other big difference compared to the past, although BTC remains dominant for some assets, is that stablecoins have seen a huge increase in use.
Monero (XMR) remains widely used on the Dark Web thanks to its privacy features, which make transactions untraceable and ensure a high level of anonymity for users.
XMR is widely used for purchases, ransoms (Ransomware), money laundering (allowing criminals to effectively obscure the origins of their funds) and to conduct transactions without government oversight (this includes places where authorities freeze the accounts of political dissidents and activists). On almost all markets, XMR is now widely used and has been since 2016. In particular, Abacus Market and STYX Market accept XMR together with BTC, offering users options for more private transactions.

INTEGRATION OF FUNDS INTO THE ECONOMY
Dark Web criminals then use different methods and platforms to convert cryptocurrencies into fiat currency:

1) OTC Desks (Over-The-Counter. OTC Desks offer the ability to exchange large amounts of cryptocurrency for fiat relatively anonymously. These desks are used not only to convert cryptocurrencies into fiat, but also to transfer funds across borders without rigorous control. An example of OTC Desk involved in illicit activities is SUEX, BTC-e, Chatex)

2) Parasite VASP (Virtual Asset Service Provider are entities that do not comply with anti-money laundering directives and KYC rules by ensuring anonymous transactions. They often connect to legitimate platforms, disguising their illicit activities as legitimate operations. They avoid rigorous compliance checks using advanced security techniques anonymization and transaction mixing)

3) High Risk VASP (they are cryptocurrency exchanges considered high risk due to their lack of compliance with AML and KYC regulations. They often operate in jurisdictions with non-existent regulations. They do not require users to provide detailed identity information, making them a safe haven for criminals. Often located in countries with very weak financial privacy laws, they facilitate the anonymous use of cryptocurrencies. They allow the rapid and anonymous conversion of cryptocurrencies into fiat.

4) P2P (allow users to trade cryptocurrencies, often with minimal KYC requirements. While some of these platforms are technically subject to Anti-Money Laundering regulations, these rules are often circumvented. Cash or credit card trades are used with poor KYC checks)

5) Purchase of prepaid cards (with poor KYC checks) paying in crypto and then withdrawing from ATM or used to make purchases

6) Crypto ATM (ATM offer a way to exchange cryptocurrencies for cash anonymously. Many of these ATM have relatively low KYC policies. They are active in North America and many Eastern European countries)

7) Direct Purchases with Cryptocurrencies (Some criminals prefer to avoid fiat conversion altogether and spend cryptocurrencies directly. This can include the purchase of luxury goods, prepaid gift cards and other goods and services. For example, goods such as luxury, jewelry and real estate are often purchased with cryptocurrencies to integrate illicit funds into legality), Cash-to-Crypto Exchange Services (services that allow you to exchange cryptocurrencies for cash anonymously without undergoing rigorous checks on the origin of the funds)

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