How Big is the Darknet Market?

• German officials said the marketplace had about 17 million buyer accounts and more than 19,000 sales accounts.
• Finally, immediate feedback on the payment outcome adds an ultimate confirmation to the customer regarding the payment.
• Some virtual currency exchanges are exploited by malicious actors, but others, as is the case with Garantex, Suex, and Chatex, facilitate illicit activities for their own gains.
• But the key to attracting users to these platforms is providing cryptocurrency and fiat currency-laundering services, the research shows.
• In light of the major announcement of Joker’s Stash shutting down on February 15th, 2021, we’ve dived into the cybercrime underground to understand more about the closures of Dark Net marketplaces and where market’s users migrate to.

While most virtual currency activity is licit, virtual currencies can be used for illicit activity, including sanctions evasion through darknet markets, peer-to-peer exchangers, mixers, and exchanges. This includes the facilitation of ransomware schemes and other cybercrimes. Some virtual currency exchanges are exploited by malicious actors, but others, as is the case with Garantex, Suex, and Chatex, facilitate illicit activities for their own gains. Before it was shut down in April 2022, Hydra accounted for 93% of all economic value received by darknet markets in 2022 — about $357.4 million. The platform, based in Russia, specialized in facilitating drug sales, money laundering services and other illicit offerings.

The darknet market, also known as the dark web marketplace, is a hidden part of the internet that is not indexed by search engines. It is accessible only through specialized software, such as the Tor browser. The darknet market is notorious for its illicit activities, including the sale of drugs, weapons, and stolen data.

HUDSON INTELLIGENCE, LLC

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. Darknet markets have been around for over a decade, and their business model has evolved and adapted over time. These markets are essentially online black markets that allow users to buy and sell illegal goods and services using cryptocurrencies.

Size of the Darknet Market

Dark Web And Cryptocurrencies

The size of the darknet market is difficult to determine due to its anonymous and decentralized nature. However, according to a report by Chainalysis, a blockchain analysis firm, the total value of transactions on the darknet market reached $1 billion in 2020. This represents a significant increase from the $700 million recorded in 2019.

Total darknet market revenue for 2022 ended at $1.5 billion, down from $3.1 billion in 2021. He helps produce actionable intelligence to protect against botnet-related threats by working behind the scenes to identify network and application-based vulnerabilities. Daniel brings over ten years of experience to the Radware Threat Intelligence division.

Top Darknet Markets

How Has The Pandemic Affected The Darknet Marketplace?

There are several prominent darknet markets, including Hydra, White House Market, and Monopoly Market. Hydra, which is based in Russia, is the largest darknet market, with an estimated 50% market share. White House Market, which is known for its user-friendly interface and strict security measures, is also popular. Monopoly Market, on the other hand, is known for its wide selection of drugs and other illicit goods.

The search feature, as shown in Figure 3, lets a user search for specific brands, credentials from a particular website, or specific data types like a credit card. Anonymous browsing with a VPN or other encryption services will help hide your online activity from your government, ISP, or other prying eyes. That year, Ulbricht was arrested and charged with money laundering, computer hacking, conspiracy to traffic narcotics, and attempting to have at least five people killed because they threatened to reveal the truth behind the Silk Road. The investigation into AlphaBay revealed that numerous vendors sold fentanyl and heroin, and there have been multiple overdose deaths across the country attributed to purchases on the site. The DOJ also charged one of Hydra Market’s alleged operators with conspiracy to distribute narcotics and conspiracy to commit money laundering. One Darknet Analysis Project highlighted the proliferation of personal protective equipment for sale (e.g. masks, gowns, and test kits) as well as various purported medications, antidotes and serums.

Challenges in Measuring the Darknet Market

Measuring the size of the darknet market is challenging due to several factors. First, the darknet market is constantly changing, with new markets emerging and old ones disappearing. Second, the anonymity of the darknet market makes it difficult to track transactions and estimate the number of users. Third, the use of cryptocurrencies, such as Bitcoin, further complicates efforts to measure the size of the darknet market.

Conclusion

The darknet market is a significant part of the internet, with an estimated value of $1 billion in transactions in 2020. Despite its size, the darknet market remains a hidden and anonymous part of the internet, making it difficult to measure and regulate. As long as there is demand for illicit goods and services, the darknet market is likely to continue to thrive.