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These technology-driven changes, which mainly include the high use of cryptocurrencies and the use of secured browser technology such as The Onion Routing (TOR), have facilitated the widespread use of these markets for the trading of illegal goods. At my company, our researchers continually monitor dark web and deep web threat actors and their ongoing activities. Based on our months of research and years of dark web monitoring experience, we have identified five main reasons dark web and cybercrime markets are booming.
Bitcoin, a decentralized digital currency, has gained significant popularity in recent years. While it offers numerous benefits and is widely used for legitimate purposes, there is also a darker side to this cryptocurrency. In the depths of the internet lies the mysterious realm known as the Dark Web, where illegal activities thrive and transactions are often conducted using bitcoins.
The Dark Web: A Cloak of Anonymity
The Dark Web refers to a hidden part of the internet that can only be accessed using special software such as Tor. It provides a level of anonymity that cannot be achieved through regular browsers, making it an attractive platform for individuals engaged in illicit activities.
“The retroactive operational security of bitcoin is low,” says Qatar University researcher Husam Al Jawaheri. “When things are recorded in the blockchain, you can go back in history and reveal this information, to break the anonymity of users.” “In or about November 2016, the AlphaBay website recommended to its customers that they use a bitcoin tumbler service to ‘erase any trace of [their] coins coming from AlphaBay,’ and provided an embedded link to the Tor website for Helix,” FinCEN said.
The Connection with Bitcoins
Bitcoins have become the preferred currency on the Dark Web due to their inherent features:
- Anonymity: Bitcoin transactions do not require any personal information, allowing users to remain unidentified.
- Decentralization: As a decentralized currency, bitcoins are not controlled by any government or financial institution, making it difficult to trace transactions.
- Irreversibility: Once a bitcoin transaction is confirmed, it cannot be reversed, providing an added layer of security for illegal transactions.
While the future of the dark web, a magnet for criminal activity, is un-predictable in many ways, there are growing trends in both its audience and functionality. Read more to discover what dark web trends we predict will continue or shift in the future. By implementing these recommendations, policymakers and law enforcement agencies can take steps to mitigate the challenges posed by the Darkweb and protect the public from its potential harm. Several potential research areas are related to the Darkweb, phishing, and cybercrime. The top three sources for Darkweb research based on the number of publications are Lecture Notes in Computer Science, ACM International Conference Proceeding Series, and the International Journal of Drug Policy. The top three sources based on the number of citations are the International Journal of Drug Policy, Forensic Science International, and Addiction.
The combination of these features makes bitcoins the perfect currency for conducting illegal activities on the Dark Web.
Frequently Asked Questions about Bitcoins and the Dark Web
1. Can bitcoins be traced on the Dark Web?
Without The Dark Web, The Bitcoin We Know Today Might Not Be
After some incredible and persistent desk-jockey sleuthing, Ulbricht, who used the online nickname “Dread Pirate Roberts”, was eventually caught logged into the site from a public library. He was arrested and charged with money laundering, computer hacking crimes, conspiracy to traffic narcotics and attempted murder to silence at least five people who threatened to unmask Silk Road. Europol says that ransomware actors such as Zeppelin, SunCrypt, Mamba, Dharma or Lockbit have also used this service to launder ransom payments they have received.
No, bitcoins are not easily traceable on the Dark Web due to the high level of anonymity provided by both the currency itself and the Tor network. However, law enforcement agencies and cybersecurity experts are continually working to develop techniques to track illicit bitcoin transactions.
In the mid-1990s, The Onion Routing project, led by these pioneers, laid the foundation for what would eventually become the Dark Web. The project aimed to create a system that could protect sensitive government communications and allow individuals to browse the internet without revealing their identity or location. ZHONG funded the Fraud Accounts with an initial deposit of between 200 and 2,000 Bitcoin. After the initial deposit, ZHONG then quickly executed a series of withdrawals. Less than five seconds after making the initial deposit, ZHONG executed five withdrawals of 500 Bitcoin in rapid succession — i.e., within the same second — resulting in a net gain of 2,000 Bitcoin.
Garlam’s Weekly Crypto Digest Week of March 13th
2. What kind of illegal activities occur on the Dark Web?
A wide range of illegal activities take place on the Dark Web, including but not limited to:
Per data scraped by Bitfury’s Crystal blockchain analytics platform, in Q1 of 2019, dark net vendors raked in a cumulative $240 million in bitcoin—up from $87 million in Q1 of 2017. Even so, as dark net markets continue to gobble up coins despite routine routs by law enforcement, their users’ appetite for bitcoin has (slightly) subsided. As the popularity of the dark web grew, it became increasingly easy to log into the dark corner of the internet to buy and sell drugs, fake documents, ammunitions, child pornography and other varieties of illegal goods. The websites or platforms where such trades occur are what we call dark web marketplaces. Bitcoin became the preferred currency for transactions on the Dark Web due to its pseudonymous nature and ease of use. Its decentralized nature, absence of a central authority, and encryption techniques made it ideal for anonymous and untraceable transactions.
- Drug trafficking: The Dark Web serves as a marketplace for buying and selling various narcotics.
- Hacking services: Cybercriminals offer hacking services, stolen data, and compromised accounts.
- Weapons trade: Illegal firearms and weapons can be found for sale on the Dark Web.
- Identity theft: Stolen personal information is often bought and sold to enable identity theft.
3. Are bitcoins solely used for illegal purposes on the Dark Web?
No, bitcoins are also used for legitimate purposes such as online shopping, investment, and international money transfers. However, due to the untraceable nature of the currency, it has become a preferred method of payment for those engaging in illicit activities on the Dark Web.
In conclusion, while bitcoins have revolutionized the world of digital currency, their association with the Dark Web cannot be ignored. The level of anonymity and decentralization provided by bitcoins makes them an attractive choice for individuals involved in illegal activities. As technology advances, it becomes crucial for authorities to stay one step ahead to combat the misuse of this cryptocurrency.
