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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. The news of the Dream closure coincided to the day with news from the FBI of a string of dark net drug arrests in Operation SaboTor. It resulted in 61 arrests and the shutdown of 50 dark web accounts, and as yet we do not know if these were connected to Dream. Even so, the cat and mouse game between online drug traders and the police is far from over. There are still many other dark net markets operating, and single-vendor sites, too, plus new app-based vending across Wickr, Telegram, Instagram and Facebook, as well as standard mobile-phone delivery services.
Understanding the Current State of Darknet Markets
For a local machine configuration he recommends a computer purchased for cash running Linux, using a local Tor transparent proxy. For operations security he suggests avoiding storing conversation logs, varying writing styles, avoiding mobile phone-based tracking and leaking false personal details to further obfuscate one’s identity. Its listings grew from fewer than ten products in the months prior to Dream Market’s closure in early 2019 to over 100 products by July that year. Although more than 70 DWMs were observed at the end of last year, the four big Russian markets divide 80% of the total volume among them, while the western bitcoin-based market ASAP comes in 5th place with 7%. Tor onion service addresses are intentionally not memorable, relying on a random string of non-mnemonic characters and numbers followed by the “.onion” top level domain (TLD). This string is automatically generated when the onion service is originally configured using a public key.
The question why are all the darknet markets down has become increasingly relevant as users have noticed widespread inaccessibility to these platforms. Darknet markets serve as online platforms for buying and selling illicit goods and services, often using cryptocurrencies to maintain anonymity. However, recent events have led to significant disruptions within this shadowy online ecosystem.
Key Reasons for the Downtime of Darknet Markets
Total darknet market revenue for 2022 ended at $1.5 billion, down from $3.1 billion in 2021. Law enforcement agencies have seen notable successes in identifying and apprehending darknet market operators. Their focus tends to fall on the largest markets, or those that have operated the longest. This attention can be too much for some markets, which will voluntarily close rather than remain an obvious law enforcement target for too long.
The darknet does have some legitimate uses including private communication and the protecting of confidential resources. Despite this, the darknet is probably better known for its hosting of drug marketplaces, such as the Silk Road, black markets and cyber attack services to name a few. Its very design makes the darknet a hotspot for criminal activity, and so this has become synonymous with this section of the web. Between 2019 and 2021, we found that 31% of all funds sent to Garantex — over $645 million worth of cryptocurrency — came from addresses connected to crime or hosted by high-risk services like mixers and low-KYC exchanges. That figure includes over $50 million from scams like Finiko, over $60 million from darknet markets like Hydra, and over $10 million from ransomware strains like NetWalker.
While some companies do offer this service, be aware the results are always incomplete, because there are many private forums and sites that simply cannot be discovered or indexed by a scanner. Here is a screen shot of a minimum deposit requirement to join a dark web marketplace. In 2023 the dark web has over 2.5 million daily visitors, and it’s estimated that more than half of those visitors have participated in illegal activities. What’s even more alarming is that in April 2023, daily dark web visitors rose by 200,000 to reach 2.7 million.
There are multiple factors contributing to the current situation. Here are some of the primary reasons:
- Law Enforcement Actions: Authorities across different countries are collaborating more effectively to target and shut down illegal online activities. High-profile takedowns can result in multiple marketplaces going offline simultaneously.
- Technical Difficulties: Darknet markets can experience downtime due to server issues or maintenance. These platforms often operate on complex infrastructure, making them susceptible to technical failures.
- Internal Conflicts: Many darknet markets face internal disputes or management issues, leading to temporary or permanent shutdowns.
- Market Saturation: With a rise in the number of markets, some may fail to sustain user interest or operational security, causing them to shut down.
Whether or not members of the law enforcement have already exploited the existing vulnerability remains to be seen in the weeks/months ahead. Versus was exposed for IP leaks in March 2020 and suffered a massive Bitcoin theft from user wallets in July 2020. In both cases, the platform owned the mistakes and was completely transparent about what happened. After an in-depth assessment, we did identify a vulnerability which allowed read-only access to a 6+ month old copy of the database as well as a potential IP leak of a single server we used for less than 30 days. DeSnake, meanwhile, maintained both on Dread and to WIRED that he doesn’t have any personal or professional connection to threesixty, the hacker whose vulnerability discovery took down AlphaBay’s largest remaining competitor. “We handled it the best possible way, due to the severity of the issue,” DeSnake says.
Individuals began using the darknet to pseudonymously sell illegal content without face-to-face interaction. Over time, ambitious individuals created infrastructure for these transactions, where for a fee, sellers have access to a digital ‘storefront’ to sell their products in a centralized marketplace. Given the darknet’s infrastructure, which is hidden behind onion routing, the darknet attracts sites whose proprietors want to remain anonymous. AlphaBay operated as a hidden service on the “Tor” network, and utilized cryptocurrencies including Bitcoin, Monero and Ethereum in order to hide the locations of its underlying servers and the identities of its administrators, moderators, and users.
They were among the 119 people arrested around the world in connection with Genesis Market takedown. “And those records helped law enforcement uncover the true identities of many of the users,” the official said. U.S. officials said Genesis Market was not only a seller of stolen account access credentials but was also “one of the most prolific” initial access brokers operating on the darknet. Some of these sites have turned to influencers to boost their publicity campaigns. Earlier this month a Kraken employee told Russian news website Lenta.ru that the market had a dedicated PR department.
Most Weapons On The Dark Web Come From US, Study Finds
Impact on Users
The closure of these marketplaces has a notable impact on their user base:
- After solving the captcha, the user can continue to login or register an account.
- For all scraped offers we analyzed the country of origin and the shipping location.
- Early on, OMG was the frontrunner, peaking at just over 65% of the underground market business, but a June distributed denial-of-service (DDoS) attack on OMG drove users to competitors Mega Darknet Market and Blacksprut Market, according to Chainalysis.
- 1) Russian-language DNM vendors favour the dead-drop delivery model dubbed klad/клад (Russian for “treasure”), as opposed to the international mail delivery model adopted by western DNMs.
- Loss of Access: Users lose access to products and services that were previously available, leading to frustration and desperation.
- Increased Prices: With fewer available marketplaces, the competition decreases, potentially leading to higher prices for goods.
- Search for Alternatives: Users may migrate to less reputable or newer markets, which can increase their risk of scams or law enforcement attention.
Future of Darknet Markets
As users ponder why are all the darknet markets down, it’s crucial to consider how these markets may evolve:
- Resilience: Many darknet markets are known for their ability to reinvent themselves, often resurfacing under new names or with improved security measures.
- Innovation: Future markets may incorporate better privacy technologies or decentralized systems to evade law enforcement.
- Shifts in Demand: As authorities clamp down, users might seek alternative methods for acquiring goods, which could lead to the rise of new platforms or underground networks.
FAQs
Q: What are darknet markets?
A: Darknet markets are online platforms that facilitate the buying and selling of illegal goods and services, often operating on the Tor network.
Q: Why are these markets commonly targeted by law enforcement?
A: Their illegal nature and association with crime make them prime targets for law enforcement seeking to curb illicit activities.
Q: Is there a possibility of seeing these markets return?
A: Yes, many markets have a history of resurfacing after being taken down, often under new names or with enhanced security protocols.
The current situation surrounding darknet markets raises significant questions about their future and the ongoing struggle between law enforcement and those operating in the shadows of the internet. Understanding why are all the darknet markets down is essential for anyone interested in this complex and rapidly evolving digital underworld.
