Darknet markets have shown signs of recovery in 2023, with crypto revenue on the rise despite the closure of the significant Hydra marketplace in 2022. According to Chainalysis, a blockchain forensics firm, fraud shops and darknet marketplaces reported a nearly 25% revenue increase to almost $2 billion in 2023 compared to the previous year.
After the closure of Hydra, cybercriminals wasted no time in launching two new darknet marketplaces in Moscow, as highlighted by Chainalysis. While the ecosystem is showing signs of recovery, it has not yet reached pre-Hydra closure revenue levels due to the financial success of that operation.
One of these new marketplaces recorded “over half a billion in crypto inflows” in 2023, indicating a growing demand for illicit services like money laundering, ransomware, and malware attacks despite global law enforcement efforts. However, Chainalysis emphasizes that no dominant darknet market has emerged as the main player offering a wide range of illicit products, suggesting that the ecosystem is still awaiting a leading platform.
In a recent development, the founder of the crypto mixing service Bitcoin Fog, Roman Sterlingov, was found guilty by a federal court of laundering money associated with illicit drug sales on the dark web. The prosecution revealed that Bitcoin Fog played a crucial role in concealing over $400 million in transactions, including $78 million directly linked to major darknet marketplaces. This underscores the ongoing challenges faced by law enforcement agencies in combating illicit activities in the crypto space.
