Why are all the Darknet Markets Down?

• Before moving back to New York City, he worked for news outlets in South Africa, Jordan and Cambodia.
• They were selling 1,470,000 tokens for $100 each, to potentially raise the astronomical amount of $147,000,000.
• What is more recent is the advent of secure and encrypted online (‘darknet’) marketplaces that are only accessible via anonymising software such as The Onion Router (TOR).
• However, the operators probably realized the risk of exposure was too significant to continue.
• In 2019, rumors of a v4 onion service address emerged and many Tor onion service network administrators supposedly already mirror their content on v4 addresses.

The Darknet has been a hot topic in recent years due to its association with illicit activities such as drug trafficking, weapons sales, and other illegal transactions. Darknet markets, also known as “cryptomarkets,” are online marketplaces that operate on the Darknet and use cryptocurrencies as a form of payment. However, in recent months, many of these markets have gone offline, leaving users wondering why.

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Explanation for the Darknet Markets Down

Since then, though they now account for a much smaller percent of overall cryptocurrency activity, the darknet market ecosystem has grown significantly. In 2019, we found that darknet markets as a whole took in nearly $800 million worth of cryptocurrency in revenue, with 49 individual markets active during the year. The Drugs and New Technologies project (under the auspices of the Drug Trends program) at the NDARC has been monitoring darknet markets since 2013, and has a long series of data on the size of these markets over time.

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There are several reasons why Darknet markets may go offline. Here are some of the most common explanations:

Chainalysis found similarities in the on-chain data of Hydra and OMG, suggesting a link between the platforms’ operators. Moreover, it also aimed at disrupting opioid and fentanyl trafficking over the dark web. Besides the arrests, law enforcement seized 258 kg of amphetamines, 43 kg of cocaine, 43 kg of MDMA, and over 10 kg of LSD and ecstasy pills. One hundred and fifty-three of the 288 vendors and buyers were arrested in the U.S., 55 in the U.K., 52 in Germany, 10 in the Netherlands, nine in Austria, five in France, two in Switzerland, and one each in Poland and Brazil. In repressive regimes, darknets play a vital role in enabling free speech and access to uncensored information.

• Law enforcement action: Law enforcement agencies worldwide have been cracking down on Darknet markets for years. In recent months, there have been several high-profile takedowns of major markets, including Wall Street Market, Valhalla, and Silkkitie. These takedowns often involve the arrest of key market operators and the seizure of servers and other infrastructure.

Most of the digital content in the world is not accessible via web search engines. Because not all the information you can access online belongs in the public domain. She’s passionate about Aura’s mission of creating a safer internet for everyone. “Once we get a better sense of these broader picture results, we’re hoping to work with law enforcement a little bit more,” Duxbury said. As the investigation progressed, SA DerYeghiayan went undercover and eventually became a top lieutenant for the Silk Road website.

• Exit scams: Exit scams occur when market operators suddenly disappear with users’ funds. This can happen when a market is facing financial difficulties or when the operators decide to cash out and leave. In recent months, several major markets have been accused of exit scams, including Dream Market, Empire Market, and Nightmare Market.

There are of course key differences between darknet markets and technology companies — Apple, for instance, doesn’t need to worry about being shut down by law enforcement. 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.

In addition, sunglasses, handbags, and other accessories, which make up around 10% of counterfeits on dark markets, are not listed individually in the report but are grouped within headgear (1.5%), miscellaneous (0.4%), and articles of leather (13.4%). Therefore, to better understand the counterfeit economy on the dark web, what is the dark web used for we examined the prevalence and sales of counterfeits sold on 89 dark markets for the 3-year period January 2014–January 2017. Specifically, we quantified the price, volume, type, and origins of advertised counterfeits and estimated their sales volume and the value the same counterfeits would attract on the surface web.

Nevertheless, there are some indications from the darknet community that a war between marketplaces has emerged in recent week with DDoS as the weapon of choice. “Like the vast majority of all darknet market users, former Hydra counterparties across all categories — both retail drug buyers and criminal users — transacted almost exclusively with OMG during the OMG dominance period,” the researchers said. The particularities of DNMs operating in the former Soviet Union means there is little interplay between them and western/global darknet marketplaces. Each has different target audiences, vendors, modus operandi, and characteristics. The vacuum left by Hydra’s takedown resulted in a veritable “Cambrian explosion” in DNMs, with at least a dozen illicit projects having surfaced in its place to meet user demand.

• Technical issues: Darknet markets are complex systems that require a lot of technical expertise to operate. Technical issues, such as server crashes, can cause markets to go offline temporarily. However, if the issues are not resolved quickly, users may lose faith in the market and move on to other options.

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FAQs

What happens to users’ funds when a market goes offline?

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When a market goes offline, users’ funds are often at risk. If the market has been taken down by law enforcement, users’ funds may be seized as part of the investigation. If the market has how to buy drugs on the darknet been the victim of an exit scam, users may lose all of their funds. It is essential to exercise caution when dealing with Darknet markets and to only invest what you can afford to lose.

Are there any safe Darknet markets?

No Darknet market can be considered entirely safe. While some markets may have a good reputation, there is always a risk of exit scams, technical issues, or law enforcement action. It is essential to do your research before using any Darknet market and to only use trusted vendors.

What alternatives are there to Darknet markets?

There are several alternatives to Darknet markets, including decentralized marketplaces, peer-to-peer networks, and social media platforms. These alternatives may offer more anonymity and security than traditional Darknet markets, but they also come with their own set of risks. It is essential to do your research and exercise caution when using any online marketplace.

Conclusion

The recent wave of Darknet market takedowns and exit scams has left many users wondering why all the markets are down. While there are several explanations for this phenomenon, it is essential to exercise caution when dealing with any online marketplace. Always do your research, use trusted vendors, and only invest what you can afford to lose. The Darknet can be a dangerous place, but with the right knowledge and precautions, it is possible to navigate it safely.