How Drug Buyers And Illicit Users Migrated From Hydra To Other Darknet Markets
Hydra Market enabled vendors of a wide range of drugs — including heroin, other opioids, cocaine, methamphetamine and LSD — to connect with customers of those narcotics, who could rate sellers on a five-star system, according to U.S. prosecutors. Hydra, which had a long-standing review system and significant entry barriers for potential sellers, provided a useful platform for vendors, including crypto launderers, to prove that they were trustworthy. The trust Hydra commanded among users is obvious from how Kraken Market, which claims to be a project of former Hydra administrators, even designed its logo to make it similar to Hydra’s. In fact, there’s no evidence that Hydra and Kraken were developed by the same team. “This represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web,” Attorney General Merrick Garland said. The 288 vendors and buyers arrested in the operation “engaged in tens of thousands of sales of illicit goods” across Europe, Brazil and the U.S., where 153 of the arrests were made.
Understanding the Efforts Against Darknet Markets
In recent years, the rise of darknet markets has posed significant challenges to law enforcement agencies worldwide. As these markets facilitate illegal activities such as drug trafficking, weapons sales, and the exchange of stolen data, a concerted effort has emerged from various police agencies to combat these threats. This article explores how many police agencies are going after darknet markets and the strategies they employ.
Elliptic has recently identified more than 400 cryptoasset exchanges operating in Russia, or offering ruble trading – most of which enable users to trade anonymously. According to a press release published by German authorities, the action against the operators and administrators of the platform has been ongoing since August 2021. Following the closure of the site – believed to have been hosted in Germany – authorities stated that they have seized Bitcoin (BTC) currently worth $25.3 million.
The Landscape of Darknet Markets
Darknet markets operate on the dark web, a part of the internet not indexed by standard search engines. They often utilize cryptocurrencies for transactions to maintain anonymity. Some well-known darknet markets have included Silk Road, AlphaBay, and Hansa Market. When these platforms are shut down, new ones often emerge, making it essential for law enforcement to adapt continuously.
Global Law Enforcement Response
A wide network of police agencies is actively involved in tackling the issues presented by darknet markets. The following is a summary of the involvement:
It is likely there will be more sanctions in the future against these high risk exchange services facilitating illicit Russian activity. Elliptic’s blockchain monitoring and cryptoasset exchange screening services enable our customers to ensure they can identify transactions with these types of services. Due to the concerted law enforcement action (and successive sanctions) against Hydra, cryptocurrency cash-out services are often wary of running under the same name as they did on the now-defunct market. Thus Flashpoint analysts have observed several cash-out services and their users stating that the service in question had been present on Hydra, typically in a positive context. Nonetheless, threat actors adapted, with many choosing to move to the “RuTor” forum for communications and to decentralized platforms such as Telegram-based shops for drug advertisements, as well as offline sales. Russian-speaking DNM customers were historically frequent users of RuTor, where they would exchange information.
In 2021, Hydra received more than $1.7 billion worth of cryptocurrency, which accounts for over 75% of all darknet market revenue globally. Law enforcement officials in Finland worked with Europol and a cybersecurity firm to take down a dark web marketplace called PIILOPUOTI. For information on complying with sanctions applicable to virtual currency, see OFAC’s Sanctions Compliance Guidance for the Virtual Currency Industry here. For FinCEN’s recent alert identifying red flags on potential Russian sanctions evasion attempts, including through the use of cryptocurrency, see here. As a result of today’s action, all property and interests in property of the individuals and entities described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.
Investigators reportedly unveiled Vallerius’ real identity through his bitcoin transactions. While these sites are no longer operational, OpSec fails involving darknet drug dealers have continued, Shier added. Dutch police had turned Hansa into a honeypot – buyers and sellers could still access the darknet site, blissfully unaware that their every action was being recorded by cops. Finally, to determine the thematic map and evolution in the timespan among articles, applying a clustering algorithm on the keywords in the Biblioshiny has two main meanings. One is to reflect the importance of the theme/topic in the entire research field (centrality), and the other is to measure the theme’s development (density) (Aria et al. 2020).
- United States: Various agencies, including the FBI, DEA, and Homeland Security Investigations, are involved.
- European Union: Agencies such as Europol and Eurojust coordinate efforts among member states.
- United Kingdom: The National Crime Agency (NCA) plays a significant role in combating online crime.
- Australia: The Australian Federal Police (AFP) is actively pursuing darknet market activities.
- Canada: The Royal Canadian Mounted Police (RCMP) and local police forces collaborate on efforts.
Criminals have long sought to launder the proceeds of their illegal activity through various means, and technology has facilitated this on a grand scale. As these criminal activities and enterprises have become more sophisticated, law enforcement tools, resources, and intelligence have had to adapt. In one article, words related to a network always appear together, known as the co-words or co-occurrence network (Aria and Cuccurullo 2017). Figure 18 shows that authors focused on 11 keywords in their 49 articles, separating them into three clusters. Red is for the first cluster (‘cybercrime,’ ‘cryptomarket,’ and ‘silk road’), blue is for the second group (‘dark web,’ ‘darknet,’ ‘crime script,’ and ‘firearms’), while the third one is green (‘cryptomarkets,’ ‘darkweb,’ ‘illicit markets,’ and ‘tobacco’). The co-occurrence network is also structured and connected by its related betweenness and closeness among clusters.
Collaborative Efforts
Many police agencies recognize that collaboration is key to effectively disrupting darknet markets. This collaboration includes:
- Information sharing between countries and agencies.
- Joint operations, such as large-scale takedowns of prominent darknet marketplaces.
- Training programs focusing on digital forensics and cyber investigations.
- Public awareness campaigns to educate citizens about the risks associated with darknet activities.
Key Operations Against Darknet Markets
- Sophos recently published research suggesting the actors behind the Anubis banking trojan were using Twitter and Telegram to fetch the address of its command-and-control server and serve instructions.
- The hotspots for illegal activity on the Dark Web are marketplaces and forums where bad actors transact illegal products and services.
- The current study aims to rank the importance of trust factors affecting the risk perception of potential darknet market customers through an online survey to lay the foundations for crime prevention strategies.
- The American and European authorities said on Thursday that they had shut down two of the largest online black markets, AlphaBay and Hansa Market, and arrested their operators.
Significant operations have marked the fight against darknet markets, showcasing the commitment of police agencies worldwide:
- Operation Disruption: In 2017, this operation led to the seizure of the infamous AlphaBay marketplace.
- Operation Bayonet: Executed in 2017, resulting in the takedown of Hansa Market just days before shutting down AlphaBay.
- Operation Torrent: A 2020 operation targeting several markets, leading to numerous arrests and the seizure of cryptocurrency.
Challenges Faced by Law Enforcement
Despite these efforts, police agencies face several challenges in combatting darknet markets:
- Anonymity: The use of cryptocurrencies and encryption makes tracing transactions difficult.
- Geographical Jurisdiction: Operating in multiple jurisdictions complicates prosecutions and investigative efforts.
- Rapid Market Evolution: Marketplaces can quickly re-establish once taken down, often with enhanced security measures.
FAQs
How many police agencies are involved in combating darknet markets?
Multiple police agencies across different countries are involved. Notable agencies include the FBI, Europol, and the NCA.
What strategies do these agencies use?
Agencies use a combination of digital forensics, intelligence gathering, and international cooperation to tackle darknet markets.
Have any darknet markets been successfully shut down?
Yes, several significant darknet markets such as Silk Road and AlphaBay have been shut down through coordinated law enforcement efforts.
In conclusion, the fight against darknet markets involves a complex network of police agencies employing various strategies to mitigate the threats they pose. As these markets continue to evolve, law enforcement will need to remain vigilant and adaptable in the face of emerging challenges.
