Treasury International Capital (TIC) System
The Fight Against Darknet Markets
Numerous U.S. agencies, including the Drug Enforcement Administration, the IRS Criminal Investigation and others were involved in the operation, they said. And although there are at least 70 active DNMs globally as of November 2022, approximately 80% of market share is split between just four players. By contrast, the largest western bitcoin DNM currently in existence – ASAP Market – accounts for less than 10% of global DNM market share. Wall Street Market had 1.15 million customer accounts and 5,400 registered sellers, according to the U.S. However, don’t take those numbers to be accurate census accounts—users are anonymous, sellers and buyers both often create multiple accounts, and there’s no way to get a realistic count on the number of individuals active on a market like this. While using the dark web may seem suspect on the surface, it is perfectly legal, and there are many legitimate uses of Tor and anonymous browsing.
As we detail below, Flashpoint observed a considerable decrease in the volume of money being handled by crypto wallets linked to dark web markets. And, as we’ve previously reported, new markets have aggressively vied to take Hydra’s place—but U.S. government sanctions have so far prevented any from reaching its level in terms of breadth, reputation, and trust. As a result, threat actors have migrated elsewhere, including to forums like “RuTor,” decentralized Telegram-based shops, and even switching to offline transactions for physical commodities like narcotics. This study was designed to list trust factors potentially affecting illicit drug purchases and to test out their ranking by using a survey study based on a projective technique. Therefore, this research is limited by the fact that it could not build on the results of previous survey research.
Four of the top five highest-earning darknet markets in 2022 were conventional, drug-focused darknet markets, while just one, Brian Dumps, was a fraud shop. Given the darknet’s infrastructure, which is hidden behind onion routing, the darknet attracts sites whose proprietors want to remain anonymous. “The availability of dangerous substances like fentanyl on dark net marketplaces is helping to fuel the crisis that has claimed far too many American lives. That’s why we will continue to join forces with our law enforcement partners around the globe to attack this problem together,” said FBI director Christopher Wray. Established in 2019, the infrastructure for Monopoly Market was first dismantled in December 2021 by German authorities.
The eventual fate of all darknet markets is to be seized, to be hacked, to exit scam, or to voluntarily shut down. It’s most likely that the majority of darknet markets plan to exit scam from their inception, especially as a plan B if things go sideways. After just a few days with no word from market admins, users and one DeepSea forum moderator concluded that the market had exit scammed.
Based on that total sales figure and estimating an average cost of $10 per card, we estimate that UNICC sold card data belonging to nearly 3 million customers. Another influence on price is the amount of the cardholder’s personally identifiable information (PII) that comes with the card, such as street address and phone number. Most reputable online stores ask for this information upon purchase, hence why having it drives up the card price. Here we discuss cryptoasset compliance, blockchain analysis, financial crime, sanctions regulation, and how Elliptic supports our crypto business and financial services customers with solutions. Once a market operator has decided to shut down, an exit scam is a tempting way out.
Four alleged administrators were arrested, and €3.6 million in cryptocurrencies were seized in coordinated U.S.-Italian operations. Operation SpecTor was a coordinated international effort spanning three continents to disrupt fentanyl and opioid trafficking on the darknet, or dark web. The operation was conducted across the United States, Europe, and South America, and was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services on the darknet. Operation SpecTor builds on the successes of prior years’ operations and takedowns of marketplaces, which result in the seizure of darknet infrastructure providing investigators across the world with investigative leads and evidence.
Darknet markets have become a significant concern for law enforcement worldwide, with various police agencies actively pursuing the operatives and transactions taking place in these hidden corners of the internet.
Global Law Enforcement Efforts
While it is challenging to pinpoint the exact number of police agencies involved, many nations have dedicated resources to combat illegal activities facilitated by darknet markets. Some key players include:
- FBI – United States
- NCA – National Crime Agency, United Kingdom
- Europol – European Union’s law enforcement agency
- Interpol – International police organization
- RCMP – Royal Canadian Mounted Police, Canada
- Australian Federal Police, Australia
- The hotspots for illegal activity on the Dark Web are marketplaces and forums where bad actors transact illegal products and services.
- Like AlphaBay, Hansa Market was used to facilitate the sale of illegal drugs, toxic chemicals, malware, counterfeit identification documents, and illegal services.
- As mentioned above (“Bibliometric research tools” section), the Biblioshiny software determines each production’s scale of LCS and GCS.
- Both types of crimes, amateur or astute darknet accounts, have their set of challenges and use of whatever tools are at their disposal, including targeting the cryptomarket’s forms.
These agencies often collaborate and share intelligence to effectively disrupt illicit networks operating on darknet platforms.
Methods and Operations
To tackle the complex issue of darknet markets, law enforcement agencies employ a variety of methods, including:
- Undercover Operations: Agents may create fake accounts to monitor activity, gather intelligence, and make arrests.
- Cyber Forensics: Analyzing digital footprints and transactions to trace back to real-world identities.
- Collaboration with Private Sector: Partnering with technology companies to develop tools that can help identify and shut down darknet sites.
- Public Awareness Campaigns: Educating the public about the dangers of darknet markets, particularly among young people.
Recent Successes
In recent years, police agencies have achieved notable successes in their campaigns against darknet markets, including:
- The takedown of Silk Road in 2013, which was one of the first major darknet markets.
- Operation Disruptor in 2020, which led to the arrest of 179 individuals connected to darknet drug trafficking.
- The seizure of assets and cryptocurrencies valued at millions, disrupting the financial flow to these markets.
FAQs
How many police agencies are involved in tackling darknet markets?
The exact number is difficult to ascertain, but numerous national and international police agencies are involved, including major agencies from the US, UK, EU, Canada, and Australia.
What strategies do law enforcement use?
Law enforcement agencies utilize a combination of undercover operations, cyber forensics, and public campaigns to address the challenges posed by darknet markets.
Are there any successful operations recorded?
Yes, operations like the takedown of Silk Road and Operation Disruptor have demonstrated significant success in disrupting and dismantling darknet operations.
Conclusion
The ongoing battle against darknet markets is a complex challenge for law enforcement. Understanding how many police agencies are going after darknet markets provides insight into the global seriousness of this issue.
