Understanding the Darknet Market
InTheBox features over 400 custom “web injects” that threat actors can buy and use to hack into different mobile apps and services. “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. Throughout 2022, we observed a negative relationship between funds sent to regular darknet markets and those sent to single vendor shops.
The darknet market refers to the online space where illicit goods and services are traded, often anonymously. It operates on specific software such as Tor, which allows users to remain unidentified while exploring these markets.
How Big is the Darknet Market?
The size of the darknet market is challenging to quantify due to its secretive nature. However, several studies and reports provide insights into its scale:
When users became suspicious, Wall Street put out a message that they were having technical difficulties and that any missing bitcoin would be returned. “IRS-CI is increasingly dedicating more investigative time and agent expertise to tackle darknet and cryptocurrency crimes,” said Special Agent in Charge Albert Childress of the IRS Phoenix Field Office. “Our agents excel in addressing sophisticated cyber-related schemes and are up to the challenge of locating and apprehending criminals who try to hide in the digital world.” 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.
Cazes also possessed millions of dollars in cryptocurrency, which has been seized by the FBI and the Drug Enforcement Administration (DEA). Up until very recently, DarkMarket had emerged as one of the biggest illegal sales platforms out there, clocking up more than 320,000 transactions and a turnover of €140m. The site controller, an Australian national, was identified following forensic examination of servers based in Moldova and Ukraine.
However, during the data scraping process, the placeholder price is mostly that which is collected rather than the individual price variations. In some instances, vendors listed the variations of the products in separate listings and later merged them into a single listing with the option of making the wanted changes (color, amount, etc.) or vice versa. In such cases, we can determine the average price of such a merged listing to get a more accurate representation of the product price. For listings with a holding and placeholder price, we searched for the same product from the same vendor to find a replacement price.
Finally, we found that migrating users tended to migrate predictably to coexisting dark marketplaces which had the largest overall volumes and the highest numbers of users in common with the closed marketplaces. The total number of distinct users which directly interacted with a dark marketplace is 8,377,478. The volume of transactions sent and received by dark marketplace addresses amounts to 4.210 billion US dollars, while the volume received by dark marketplaces addresses is 1.99 billion US dollars. Note that the conversion between Bitcoins and US dollars is done using the price of Bitcoin at the time of the transaction. Table S2 in Supplementary Information Section S2 reports characteristics of the 31 marketplaces analysed in this paper, including the overall number of users and transaction volume.
The next most notable darknet markets currently active are Versus Market, Monopoly Market, ToRReZ Market, and of course the Russian darknet behemoth—Hydra—which has been active since 2015 and is likely the largest darknet market in the world. We analysed a novel dataset of Bitcoin transactions on 31 major dark marketplaces and investigated how the dark marketplace ecosystem was affected by unexpected marketplace closures between 2013 and 2019. The dark marketplaces we considered were heterogeneous in many ways and 24 of them were closed abruptly due to police raids and scams. We found that the total volume traded on these dark marketplaces dropped only temporarily following closures, revealing a remarkable resilience of the marketplace ecosystem. We identified the origin of this resilience, by focusing on individual users, and unveiled a swift and ubiquitous phenomenon of migration between recently closed and coexisting marketplaces. We found that migrating users were more active in terms of total transaction volume compared to users who did not migrate.
- Bitcoin mixers and “cleaning” services are showing signs of a continued rise in prevalence and sophistication.
- Past large shuttered marketplaces that immediately come to mind include Silk Road 1 & 2, AlphaBay, and Hansa.
- The number of retailers on Agora dropped at this point and Evolution continued to grow to almost 1500 retailers – surpassing numbers of retailers on any of the earlier darknet markets.
- These hidden networks provide a platform for illegal activities that include the sale of stolen data, hacking tools, weapons, counterfeit currency, and narcotics.
- Xennt did not come to the door, but one of his managers spoke to the officers and showed them to the server bank.
Sipuli is the largest Finnish darknet market site and was created in early 2018, just after Silkkitie (Finnish Silk Road) went down. It was thought as an alternative to Silkkitie since the disappearance of that market left a big gap, especially noticeable in the Scandinavian market. Spurdomarket is on of the largest Finnish darknet market site and was created after Sipulimarket went down and has served as a replacement since.
- Market Listings: As of the latest reports, there are thousands of listings across various darknet marketplaces, spanning categories like drugs, counterfeit currency, and hacking services.
- Estimated Value: In 2021, the darknet market was estimated to have generated over $1.5 billion in revenue, showcasing the substantial economic activity occurring anonymously.
- Active Users: It is believed that millions of users access these markets regularly, contributing to their growth and expanding the range of services offered.
These attacks are sometimes launched by competing markets in order to try to gain market share. Dream Market was forced to shut down in the face of DDOS extortion in 2019, with the attacker demanding a $400,000 ransom. In the wake of Hydra market’s collapse in 2022, new markets quickly swooped in to try and replace it. Is an English and Russian language marketplace that seems to have captured many of Hydra’s former vendors and consumers.
Factors Influencing Size and Growth
Several factors contribute to the growth and scale of the darknet market:
- Anonymity: Users value their privacy, and the ability to conduct transactions without revealing identity is a primary driver.
- Accessibility: With increasing online access, more individuals are able to explore and engage with these markets.
- Variety of Goods: The diverse range of products, from legal grey-area items to completely illegal goods, attracts a wide user base.
Corona Market
Frequently Asked Questions (FAQs)
1. What types of products are available on the darknet market?
The darknet market offers a variety of products including:
- Illegal drugs
- Stolen credit cards
- Counterfeit documents
- Hacking and software tools
2. Is it safe to buy from the darknet?
Purchasing from the darknet market carries significant risks, including legal repercussions and the potential for fraud. Users must weigh these risks carefully.
3. How does one access the darknet?
To access the darknet market, users typically need to install specific software such as Tor, which anonymizes their internet traffic.
The Future of the Darknet Market
As technology evolves, the darknet market continues to adapt. Innovations in encryption, cryptocurrency transactions, and the rise of new marketplaces suggest that the size and capability of these markets may expand further, posing challenges for law enforcement and regulators.
In summary, understanding how big is the darknet market requires considering various factors, including its estimated revenue, active user base, and the type of goods traded. Despite the risks involved, its appeal continues to grow, highlighting the ongoing need for vigilance and research in this shadowy aspect of the internet.
