HYDRA MARKET: RUSSIA’S MOST PROMINENT DARKNET MARKET
Ranklez and alpha02 had a history in the carding community as Ranklez sold alpha02 fullz for conducting identity theft. In 2016, an angry user of AlphaBay known as “Kinger” stated that alpha02 had left the market in late 2015, sold his stake to DeSnake, and DeSnake was supposedly acting as admin for its final two years. Kinger’s ominous threat suggested they knew his real life identity and his citizenship was actually Dutch.
Dark Web Markets (DWMs) are the markets on the dark web that are used to access illegal products and services. Users can access illicit products, such as drugs, unregistered firearms, fake ID cards, credentials, and data sets in DWMs. These illegal shopping platforms, which gained popularity in the dark web in 2011 with Silkroad, which we call the first modern DWM, have increased their activity until today. After the Silkroad closed with the FBI operation in 2013, big names such as RAMP, one of the longest-lived dark web markets, and Hydra emerged and were later taken down. The closure of these illegal markets resulted from the operations carried out a significant blow to the dark web activities.
Exploring the Depths of the Darknet Market
And since July 2018, Hydra mandates that any outbound withdrawals of cryptocurrency from a seller’s wallet flow through a predetermined set of crypto exchanges throughout countries in Eastern Europe that are on good terms with the Russian government. A joint study by Flashpoint and Chainalysis shows that Hydra’s transaction volume surged by over 600% between 2018 and 2020, with revenue rising from less than $10 million worth of cryptocurrency in 2016 to $1.3 billion by 2020. These drop-spots could work both ways, with the seller then burying drugs or other illegal goods to ship back out.
Although some of them returned, not all could authenticate themselves by their private PGP key. One of the administrators lost his key, which meant that he couldn’t confirm his identity. Losing the main thing used by cybercriminals to authenticate themselves for the rest of society equals complete compromise and a lack of trust. The event in which another forum administrator went missing was described in a previous article.
The term darknet market typically refers to online marketplaces that utilize the dark web, providing a space for transactions largely unaffected by typical regulations. These markets can range from selling illegal goods to a variety of services, often operating under the cloak of anonymity.
Trading volume share for a given market is the trading volume of a market normalised by the total trading volume of all dark marketplaces. We find that the top two destination marketplaces experience an increase in the trading volume share starting 2 days after the closure, and saturating about 6 days after with a share of \(27\%\), more than double the share at the time of closure. The second top destination, on the other hand, increases its share from 5 to 8.7%. Much of the allure of the Silk Road and other dark web markets is anonymity. Even if your online activity is completely legal, privacy is essential to avoid hackers and other snoops. Avast One is a comprehensive cybersecurity solution with a built-in VPN that fully encrypts your internet connection for true online privacy.
Over the last 18 months, 15 English language darknet markets stopped operations. Right now the oldest English language darkent market is Empire which is 3 years younger than Hydra. Whisper will be a messenger that uses PGP and VPN to secure anonymity for users. This is probably the first time where one group attempts to create such a complex service offering on the darknet. Criminals who would use only their services, would be concentrating their info in one place and sending it exclusively through their services.
For example, “28 g PSEUDO SPEED” for $2000 or “Lot of 10 High Quality Counterfeit Gold Bars” for $5799. This section looks at the data for all products and counterfeits and their distribution across markets. We then focus on counterfeit product types and product origins and compare our measures with estimates from audits of goods seized by law enforcement at borders. Lastly, we evaluate the monetary value of offered and sold counterfeits and the generated sales volume of vendors. From a buyer’s perspective, the anonymity of darknet markets is a major selling point. Buyers can purchase illegal goods without revealing their identity or risking getting caught by law enforcement.
This time, it’s a drug-related market called Nucleus, and no one seems to know quite why the site has vanished. We’re ready to help, whether you need support, additional services, or answers to your questions about our products and solutions. She writes about cybersecurity startups, cyberattacks in Eastern Europe and the state of the cyberwar between Ukraine and Russia. Her work has also been published at Sifted, The Kyiv Independent and The Kyiv Post.
Understanding the Size of the Darknet Market
When considering how big is the darknet market, there are several factors to assess: the number of active markets, types of goods and services offered, and the volume of transactions. This underground economy has grown exponentially over the past decade.
- Active Markets: Numerous darknet markets exist, with varying lifespans. Each market often undergoes a cycle of creation, growth, and eventual shutdown.
- Transaction Volume: Estimates suggest that the annual transaction volume on darknet markets can reach billions of dollars, illustrating a significant economic dimension.
- Product Diversity: Darknet markets offer a wide range of illegal products, including drugs, weapons, counterfeit currency, and personal data, alongside legal goods in some cases.
Statistics and Estimates
Research indicates that the darknet market has seen considerable growth over the years:
- In 2019, it was estimated that the darknet economy was worth around $1.7 billion.
- A study in 2021 concluded that the market had expanded even further, potentially reaching $3 billion.
- Over 60% of the goods sold are illicit, with drugs consistently being the leading category.
Factors Influencing Market Size
Several factors contribute to the size and growth of the darknet market:
- Anonymity: The use of encryption and privacy-focused cryptocurrencies like Bitcoin facilitates transactions without traceability.
- Demand for Illicit Goods: High demand for illegal substances, weapons, and stolen data drives growth.
- Global Reach: Darknet markets operate worldwide, enabling transaction flexibility and a broad customer base.
- Confused market participants began posting many theories in forums, including Reddit.
- Since the emergence of Silk Road eight years ago, the concept of darknet markets has remained the same.
- Since then, new decentralized marketplaces have started popping up, making it harder to shut down a darknet market by targeting a specific batch of servers.
- 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.
- You will find a wider range of drug products, from cannabis over dissociatives and psychadelics to ecstasy, opiates and prescription drugs, as well as steroids and stimulants.
FAQs About the Darknet Market Size
What types of products are most commonly found in the darknet market?
The darknet market is predominantly known for:
- Drugs: This includes everything from recreational substances to prescription medications.
- Stolen Data: Personal identities, credit card information, and login credentials.
- Weapons: Firearms, ammunition, and other dangerous items.
How does the darknet market maintain anonymity?
Users rely on:
- Tor Network: A browser that allows anonymous browsing by routing traffic through multiple servers.
- Cryptocurrencies: Digital currencies help facilitate transactions without revealing personal information.
Is the darknet market legal?
The legality of the darknet market is complex. While the market itself is not illegal, many goods and services sold are, making participation in these transactions unlawful in many jurisdictions.
Conclusion
In summary, the query how big is the darknet market reveals a vast, complex ecosystem. With billions in annual transactions and a diverse array of goods, the darknet market continues to thrive. Understanding its scale, the factors contributing to its growth, and the associated risks is crucial for anyone interested in the digital landscape of commerce.
