If Eternos indeed rises, there is a good chance for it to become one of the most prominent markets. Hydra darknet marketplace is currently the biggest Russian language darknet Market (DNM). In December 2019, the Hydra crew announced the creation of several new projects, the most important of which are Eternos and AspaNET. The Hydra crew initially planned to launch new projects in September 2020, but in June they postponed it for an unspecified time because of the COVID-19 pandemic. Given the events in the English-speaking sphere of TOR during the last 18 months, current instability among DNMs and uncertainty among darknet users, it could be an opportune time for a new player to take the stage.
This was a fascinating real-world experiment revealing what happens to a drug darknet marketplace that’s allowed to flourish. In early 2022, Russian authorities disrupted major carder markets selling stolen payment card data, including UniCC, Ferum Shop, Sky-Fraud and Trump’s Dumps, aka TDStore. Despite that crackdown, the carder ecosystem rebounded by May 2022, threat intelligence firm Recorded Future reports. As this ICO was obviously a case of organized crime crowdfunding, there would be no recourse for defrauded investors. If the new projects do not start, the Hydra administrators would probably explain themselves by citing unpredictable technical problems or using some other well-crafted, ultimately meaningless explanations. In this scenario Hydra would certainly lose trust, but the question is does it really matter?
Court documents said Hydra allowed sellers to create accounts and advertise illegal products, and buyers could create accounts to purchase them. Among illegal drugs offered for sale were cocaine, methamphetamines, LSD and heroin. Its use of Bitcoin Bank Mixer, a service for obfuscating digital transactions provided by the platform, made crypto investigations challenging for law enforcement agencies, the BKA said. Yet, like the Hydra of Greek legend, whose heads multiply when they are severed, a new generation of darknet markets popped up to challenge for control of a market worth at least $1.37 billion, according to unofficial estimates. Darknet marketplaces are commercial websites accessed by an encrypted browser which operate on the dark web, functioning primarily as black markets for illegal activity or substances.
Transactions were made using cryptocurrency like bitcoin, and Hydra’s operators received a cut for each transaction conducted on the platform. At its peak, Hydra Market was the single largest darknet market as well as the largest marketplace for online narcotics in countries of the former Soviet Union. Unrivaled in its size, reach, and complexity, and vertically integrated network—along with its status as a crucial hub for illegal cryptocurrency cashout services—made it a significant player amongst darknet marketplaces. Its closure on April 5, 2022 created a seismic shift in the Russian-language darknet marketplace landscape.
Transactions take place via a cryptocurrency like Bitcoin using dark wallets to protect the seller and buyer. The only exposed link in the chain is the actual shipping of the goods through the postal system. The Tor platform quickly became a haven for criminal activity, facilitating anonymous communication across underground digital communities and forums, elaborate drug marketplaces, child pornography and human trafficking.
It also participated in the previously mentioned laundering as well as crypto “mixing” that made it harder to track digital currency usage. By looking at the timeline graphic we can see that the English language sphere of the darknet has been in flux since at least March 2019. Although the timeline is concentrated on the fuss among DNMs, it is not the whole story. Perturbations were caused by law enforcement actions, scam exits, DDoS attacks and the disappearance of certain services and important figures.
Sure, trust is important on the darknet, but Hydra is currently the most important and strongest DNM player on Russian the scene. If somebody wants to use a Russian DNM, they will most likely eventually return there. If they ripped somebody who wasn’t their client before, they couldn’t care less. At the same time, investigation materials on Hydra were published on the Russian language internet. In September 2019, the Russian pro-government information portal lenta.ru released a short series of articles and professional, entertaining videos via the Lenta Youtube channel. The videos talk about Hydra’s beginnings and its war with RAMP, the drug cache system and how human lives are destroyed by drugs.
However, when Bitcoin’s price began to fall in mid-March following the first round of U.S. lockdowns, so too did darknet market activity. The site went dark on Tuesday after the FBI, working with law enforcement agencies in nearly 20 countries, including the U.K. The takedown on Tuesday of Genesis Market, a 5-year-old criminal marketplace described by officials as an “initial access broker,” offers a window into this type of cyber-criminal activity.
Understanding the Shutdown of Darknet Markets
The question of why are all the darknet markets down has become increasingly relevant, especially for individuals interested in the dynamics of online illicit trade. Darknet markets have historically been known for their anonymous transactions, allowing users to buy and sell illegal goods and services. However, recent events have led to a significant decline in the functionality of these markets.
Reasons Behind the Shutdown
Why Are These Markets Shunning Exit Scams?
Several factors contribute to the phenomenon of darknet markets going offline:
- Law Enforcement Actions: Government agencies worldwide have been intensifying efforts to infiltrate and dismantle darknet marketplaces. Major operations have resulted in the seizure of servers, arresting operators, and shutting down platforms.
- Scams and Exit Scams: Many darknet markets have collapsed due to internal fraudulent activities, where the administrators suddenly become unreachable with the users’ funds. These exit scams lead to a loss of trust among users and drive buyers and sellers to other platforms.
- Technical Issues: Market operators may face technical challenges, such as server crashes, DDoS attacks, or vulnerabilities that impact their ability to conduct business securely.
- Market Saturation: With numerous markets vying for attention, it can become difficult for newer platforms to establish a foothold. Saturation can lead to the decline of markets that cannot sustain themselves through consistent user engagement.
Impact on Users
The shutdown of darknet markets creates significant implications for users:
- Loss of Access: Regular users of these markets may find themselves without access to previously available goods and services.
- Shift to Alternatives: Users may be forced to migrate to less reputable or less secure platforms, increasing their risk of scams or law enforcement scrutiny.
- Increased Prices: With fewer markets available, the remaining ones may increase prices due to decreased competition.
- Still, they thought western authorities would keep this information private from Russian officials due to the current Russia-Ukraine war.
- TRM Labs calculated that in the eight months since Hydra had been shut down, the new cluster of darknet markets had amassed $820 million in crypto currency deposits.
- Users could search for vendors selling their desired type of identification document – for example, U.S. passports or drivers’ licenses – and filter or sort by the item’s price.
- Setting up a single vendor shop allows those vendors to save on fees that would ordinarily go to the administrators of a traditional darknet market.
- When a Darknet market announces it is shutting down, or when one disappears suddenly, this leaves the entire Dark Web market ecosystem in flux.
Looking Ahead
As users ponder why are all the darknet markets down, it is clear that the landscape of these platforms remains volatile. The enduring cat-and-mouse game between law enforcement and market operators indicates that while some markets may temporarily close, new ones are likely to emerge.
FAQs
Q: Are all darknet markets permanently shut down?
A: Not all markets are permanently down, but many significant platforms have been closed due to law enforcement actions or internal issues.
Q: How can users find new darknet markets?
A: Users often rely on online forums and communities to share information about new or existing markets, but such actions come with risks.
Q: Is it safe to use darknet markets?
A: Engaging in transactions on darknet markets carries inherent risks, including legal repercussions and exposure to scams.
In conclusion, the question of why are all the darknet markets down encapsulates a complex interplay of law enforcement efforts, user practices, and market dynamics. As the situation evolves, both users and authorities will continue to adapt to the shifting realities of the darknet.
