Dark Web & Bitcoin: Myths And Facts You Need To Know
2) DNMs operating in former Soviet countries generally employ fewer on-chain operational security measures. Address re-use is rife, as DNM actors in this space appear to operate with more impunity and less concern for law enforcement action than their western counterparts. Despite Hydra’s historically large volumes – the marketplace received more than $400 million between January 2022 and its demise in April (detailed here) – the new generation of DNMs has caught up quickly. Following Hydra’s seizure, the twelve new Russian-language marketplaces amassed approximately 24% more volume in a period of five months than Hydra did in the first five months of the year when it was still live. It was introduced in 2011 and was intended to be a superior version of Bitcoin.
Though Bitcoin is not controlled by the government, its previous transactions can be traced, meaning any Bitcoin spent at any darknet marketplace can reveal its previous owner’s identity. Illegal service providers use the mixing services to wipe out the transactional history of Bitcoins. Silk Road was utilised by its users as a black market for all types of (in most countries) illegal activities, like buying and selling drugs, credit card data or even guns and other weapons. It was the first Darknet black market of its kind and was the precursor for many similar sites. With longevity and network persistence offering illegal goods and services since 2019, DarkOwl assesses that Exchange Market is a comprehensive darknet marketplace that sells goods and services to support the full spectrum of potential cybercrime.
Understanding Bitcoins Accepted by Darknet Markets
In the dark web, Russian-speaking criminals tended not to take actions that would harm or target former Soviet Union countries. However, this situation changed with the start of the war, especially Conti’s declaration of total loyalty to Russia set an excellent example for this situation. Once a victim visits their profile page in order to add funds to the account directly using bitcoin payment, the trojanized Tor Browser automatically swaps the original address to the address controlled by criminals.
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- Well, yes, it is. 2020 has seen the highest record for hidden and unreported crimes.
- 2 represents the growth of publications in the field of Darkweb over 11 years from 2012 to 2022.
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The FBI used a “proprietary software tool” that analyzes financial transactions on the Bitcoin blockchain, alongside MorphToken’s own application programming interface (API), to monitor the transactions. Hydra is the largest marketplace in the darknet and most popular darknet marketplace in the Russian-speaking sphere. According to the Project news outlet, it is responsible for 64.7 billion rubles ($1 billion) in sales through its 5,000 shops between 2016 and 2019. Although a wide range of illicit goods and services are sold, the site also has a few rules, which are perhaps one of the reasons for its longevity and success. These rules include no fentanyl, no weapons, no sale of hitmen services, viruses, or porn.
On September 10—less than three weeks after Empire’s exit—Icarus Market also went offline. The site never came back up, taking all their vendors’ and customers’ funds with them . Icarus had been pushing high effort updates soon before the exit, leading CipherTrace analysts to believe that the exit likely wasn’t planned. Rather, it’s probable that the large influx of new users from Empire and their deposits made Icarus ripe for a profitable exit. As a result, the admins may have taken advantage of the opportunity and exited sooner than they had originally planned. These two episodes illustrate the fact that, despite a reputation of shadowy and capable hackers, dark web market users can be just as mindbogglingly bad as the rest of us when it comes to cybersecurity.
This section of the market includes what one would expect with subscriptions and pornographic content available for purchase and download. One listing appears to offer one-on-one guidance for the “private customization for telemarketing SMS” – which is likely a customized SMS hijacking service. Another listing, titled “Taiwan personal data 730,000 names, phone numbers, email addresses, birth dates,” is notable given tensions between the China and Taiwan and likely a result of recent cyberattacks against the country. Since the war began, geopolitical dynamics have changed, and its reflection can be seen on the dark web. Especially the fact that Russian-speaking countries make up a massive part of the dark web population made this even more visible. All trojanized Tor Browser victims will use the same User-Agent; thus it can be used as a fingerprint by the criminals to detect, on the server-side, whether the victim is using this trojanized version.
Darknet markets have gained notoriety for their use of cryptocurrencies, primarily due to the privacy and anonymity they offer. Among these cryptocurrencies, Bitcoin stands out as the most widely used. However, various other forms of cryptocurrencies are also accepted on these platforms.
The Role of Bitcoin in Darknet Markets
Furthermore, we analyse the seller-to-seller (S2S) network, i.e., the network composed only of transactions among sellers, which can be regarded as a supply chain network of illicit goods and services. We highlight that these networks exhibit different resilience regimes in the presence of external shocks, the ecosystem’s resilience being mostly guaranteed by the network of buyers rather than sellers. The median net income is positive for sellers while negative for buyers throughout the whole period of observation. This result is not trivial because, although the classification induces a positive net income for sellers, it is performed on each market and the U2U network separately, while the median net income is computed based on all transactions made by an entity. In fact, when we compute the total net income for each seller, a considerable fraction (16%) has a negative net income because they spend in markets where they are not classified as sellers, or in the U2U network. Moreover, we find a change of trend between the seller and the buyer median net income time series which reflects the dominance of markets, as detailed in the next section.
As the first and most recognized cryptocurrency, Bitcoin facilitates transactions on many darknet markets. Its decentralized nature allows users to transact without revealing their identities, enhancing the perceived security of these platforms.
Types of Bitcoins Accepted
The S2S network is mostly populated by U2U-only sellers, followed by market-only, and market-U2U (see Supplementary Information Section S5). Buyers simultaneously active on multiple markets also play the role of connectors in the ecosystem. Therefore, we analyse the temporal network where nodes are the active markets and an edge between the nodes represents the number of multibuyers between them, what we henceforth call the multibuyer network.
When discussing what bitcoins are accepted by darknet markets, it is essential to note that while most support Bitcoin, they may also accept various forms of altcoins or alternative cryptocurrencies. These can include:
- Litecoin
- Monero
- Ethereum
- Ripple
- Zcash
How Transactions Work
Transactions on darknet markets typically follow a specific protocol to ensure both security and anonymity. Here’s how it generally works:
- Creating a Wallet: Users create a cryptocurrency wallet that allows the storage and management of their currencies.
- Funding the Wallet: Users purchase Bitcoin from exchanges or peers to fund their wallets.
- Making Purchases: Users browse the darknet market listings and choose products or services to buy.
- Securing the Transaction: The buyer initiates payment using the specified cryptocurrency.
Why Bitcoin is Preferred
Several reasons contribute to the popularity of Bitcoin within darknet markets:
- Anonymity: Users can remain anonymous, with their identities protected during transactions.
- Decentralization: Bitcoin operates on a decentralized ledger, making it difficult for any authority to monitor transactions.
- Widespread Acceptance: Most darknet markets accept Bitcoin, making it a practical choice for users.
Alternatives to Bitcoin
While Bitcoin remains the dominant currency in darknet transactions, many markets are beginning to accept altcoins. The rise of privacy-centric currencies like Monero has made them attractive for users seeking enhanced security. Here are some alternatives:
- Monero: Known for its strong privacy features, making transactions undetectable.
- Zcash: Offers selective transparency, allowing users to choose what information to disclose.
FAQs on Bitcoin and Darknet Markets
What is the significance of Bitcoin in darknet markets?
Bitcoin is the most accepted and recognized cryptocurrency, facilitating anonymous transactions.
Are all darknet markets accepting Bitcoin?
Most legitimate darknet markets accept Bitcoin, though many also accept several altcoins.
Is using Bitcoin on darknet markets safe?
While Bitcoin provides anonymity, users must still exercise caution and use secure practices while transacting.
What should I know about using altcoins in darknet markets?
While altcoins like Monero offer additional privacy, their acceptance can vary, and some markets may not support them.
Conclusion
Understanding what bitcoins are accepted by darknet markets can help users navigate these platforms more effectively. With Bitcoin as the cornerstone of transactions, and various other cryptocurrencies also in play, the landscape of darknet commerce continues to evolve. As always, caution and awareness are crucial when engaging in any darknet activities.
