Monero Is Popular On The Dark Web Due To Anonymity
Understanding Darknet Markets and Zcash
With a passion for educating the masses on blockchain technology and a commitment to unbiased, shill-free content, we unravel the complexities of the industry through in-depth research. We aim to empower the crypto community with the knowledge needed to navigate the crypto landscape successfully and safely, equipping our community with the knowledge and understanding they need to navigate this new digital frontier. As prepaid gift cards can be purchased using cryptocurrency, they can also be abused by criminals to cash out illicit funds. After buying gift cards from an online service with proceeds from crime, an illicit actor can then use the cards to acquire a wide range of consumer goods from mainstream e-commerce platforms and physical stores. For example, one of the accused parties behind the Bitfinex hack allegedly spent a portion of the stolen funds on a USD 500 Walmart gift card. It is possible for criminals to integrate their crypto-based wealth without resorting to fiat currency off-ramps.
The use of cryptocurrencies has significantly evolved, particularly within darknet markets. Among the various cryptocurrencies utilized, Zcash has gained attention for its privacy features. This article explores which darknet markets accept Zcash, highlighting the benefits and considerations of using this digital currency in such platforms.
In August 2022, OFAC sanctioned Tornado Cash, which has been used by North Korean cyber-criminals and other threat actors to launder the proceeds of hacks and other illicit activity. TRM Labs showed that North Korean cyber actors used Tornado Cash to launder over USD 1 billion of stolen funds in at least ten major cryptocurrency heists. In the case shown above, a single exchange address received funds from 40 different cash-to-crypto services ATMs located all over North America.
Why Zcash?
To read more on this, check out CipherTrace’s Q Cryptocurrency AML Report. Affected users have been quick to point out the flaws in Ben’s story on Twitter, as the hosting providers shouldn’t have access to the private keys, meaning the cryptocurrency should be recoverable if Satowallet was a legitimate operation. Satowallet’s Twitter account has since been suspended and their website still appears to be offline. On August 13, the United States attorney’s office for the Northern District of California indicted Elliot Gunton and Anthony Tyler Nashatka for the 2017 hacking of EtherDelta—a crypto exchange built on the Ethereum blockchain. Once they were in the system, they were able to redirect the website’s traffic to a fake website resembling the real EtherDelta platform, and thereby steal users’ private keys. From there, the sensitive stolen data is stored in the malware command and control—a Telegram account.
However, Bitcoin is still the most commonly used digital currency on darknet markets. Monero, also known as XMR, is a cryptocurrency with privacy-enhancing features encoded into its protocol. Most popular cryptocurrencies, such as Bitcoin and Ethereum, operate on a transparent, immutable ledger, enabling anyone to view and trace transactions. Monero is also an open-source blockchain, but its features are designed to reduce traceability and protect user anonymity. One of the most common use cases for ZCash on the Dark Web is in marketplace transactions. Marketplaces such as the infamous Silk Road, where users can buy and sell drugs and other illegal goods, have long relied on cryptocurrencies to maintain anonymity.
Because high-risk VASPs and parasite VASPs usually have weak to non-existent KYC and AML requirements, they are a preferred vehicle of cybercriminals and money launderers for moving funds as part of the layering process. These exchanges are sometimes referred to as swap services, because they allow criminals to pass funds through the service by exchanging one type of cryptocurrency for another, making tracing more difficult. Cybercriminals can also use these services to cash out into the traditional financial system.
Over the first quarter of 2020 the zcash market value increased by 27%, according to a CoinMarketCap report, making it the fifth fastest growing cryptocurrency, behind dash, another privacy preserving technology. The very first of these marketplaces to pair the darknet with Bitcoin was the Silk Road. Over the next two years, the Silk Road set the standard for darknet marketplaces. By the time it was shut down in October 2013 and Ross Ulbricht arrested, the site had traded an estimated $183 million worth of goods and services. We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies. For the first time on the darknet, the most active market does not accept Bitcoin.
Crypto insider trading entails the use of non-public information to purchase cryptocurrency or other digital assets ahead of exchange listing announcements and profiting from the price surge that follows an announcement. While the vast majority of illicit commerce continues to use fiat currency such as the US dollar, cryptocurrency is the preferred medium of exchange on darknet marketplaces, cybercrime forums, and on CSAM sites. Darknet markets (DNMs), which specialize in selling drugs and also offer personally identifiable information (PII), are the biggest drivers of illicit commerce using cryptocurrency. A smaller and more elusive subset of illicit commerce concerns child sexual abuse materials (CSAM). Monero not only bakes anonymity features into the cryptocurrency itself, but implements a few features that Bitcoin still can’t offer.
Zcash is a privacy-focused cryptocurrency that allows users to send and receive funds anonymously. Its primary features include:
- Selective Disclosure: Users can choose to disclose their transaction details.
- Shielded Transactions: Provides enhanced privacy compared to other cryptocurrencies.
- Robust Security: Based on a strong cryptographic foundation.
Popular Darknet Markets Accepting Zcash
While many darknet markets typically rely on Bitcoin, several have begun accepting Zcash due to its privacy attributes. Here are some notable platforms:
- Empire Market: A well-known marketplace that has integrated Zcash, allowing users to engage in transactions with an added layer of privacy.
- Cryptonia: This platform offers a wide range of products and accepts Zcash as a payment method, attracting users focused on anonymity.
- Society Market: Known for its user-friendly interface and a good selection of vendors that accept Zcash.
- DarkBay: This newer market supports Zcash transactions and emphasizes the importance of user security.
Benefits of Using Zcash on Darknet Markets
Engaging in transactions with Zcash on darknet markets provides several advantages:
- If the proportion is something like 95%-5%, then the difference would be 0.5 vs 1.5, which is significant.
- While Bitcoin transactions are recorded on a public blockchain, Zcash uses a technology called zk-SNARKs to ensure that transactions remain completely private.
- Despite having its own national cryptocurrency, it is very likely that Venezuela is also using Bitcoin and Ether to evade international sanctions.
- The currency supports a mining process where individuals get rewarded for their activities by joining mining pools, or they can mine coins individually.
- Others in the industry questioned whether compliance with the information sharing requirements is even possible given current blockchain technology.
- Stealth addresses add additional privacy, as these randomly generated addresses for one-time use are created for each transaction on behalf of the recipient.
- Enhanced Privacy: Zcash transactions are less traceable compared to others.
- Lower Fees: Transaction costs can be more favorable than with traditional banking systems.
- Decentralization: Users retain control over their funds without a central authority.
Considerations When Using Zcash
While using Zcash has its benefits, users should remain vigilant about a few potential drawbacks:
- Market Volatility: Like all cryptocurrencies, Zcash’s value can fluctuate rapidly.
- Regulatory Scrutiny: Privacy coins like Zcash may face increased scrutiny from governments.
- Risk of Scams: As with any online transaction, users need to be cautious about potential fraud.
FAQs
1. What is Zcash?
Zcash is a cryptocurrency focused on privacy, allowing for anonymous transactions on its network.
2. Why are darknet markets using Zcash?
Darknet markets accept Zcash for its advanced privacy features, providing users with a safer way to transact.
3. Are transactions with Zcash completely anonymous?
While Zcash offers enhanced privacy, complete anonymity cannot be guaranteed.
4. What should I look for in a darknet market accepting Zcash?
Consider factors such as user reviews, the range of products, security features, and support for Zcash transactions.
Conclusion
As the world of darknet markets continues to evolve, the acceptance of privacy-focused cryptocurrencies like Zcash illustrates a growing demand for anonymous transactions. Understanding which darknet markets accept Zcash can help users make informed decisions while navigating this unique and often risky space.
