The crypto industry continues to grapple with cybercrimes, with darknet markets emerging as one of the notable categories showing an increase in revenue in 2023. According to the latest “2024 Crypto Crime Report” by blockchain analysis firm Chainalysis, darknet marketplaces received revenue totaling at least $1.7 billion in 2023, marking a rebound from the previous year.
The report notes that this resurgence follows the shutdown of the world’s largest darknet marketplace, Hydra, in 2022. While no single marketplace has replaced Hydra, smaller marketplaces are thriving by catering to specific niches and adopting specialized roles. Notably, Mega Darknet Market leads the pack with over $500 billion in crypto inflows.
Despite the resurgence, darknet market revenue has yet to reach peak levels seen during Hydra’s operation. Law enforcement agencies are expected to continue investigating and dismantling darknet markets, particularly those offering illicit products such as fentanyl. Additionally, crypto-linked sanctions by regulatory bodies like the United States Office of Foreign Assets Control (OFAC) have more than doubled, with sanctions targeting individuals or entities involved in crypto-related illicit activities.
In 2023, crypto-linked OFAC sanctions shifted toward groups and individual actors, moving away from major darknet markets and mixers. Notable individuals sanctioned include the North Korean hacking group Kimsuky and Russian national Ekaterina Zhdanova, highlighting regulatory efforts to curb illicit crypto activities.
While there has been a decline in revenue from crypto-based scams year-over-year, new types of scams, such as romance scams, have seen significant growth. Romance scams, in particular, have become more prevalent due to their effectiveness in gaining victims’ trust over time. As crypto-related cybercrimes evolve, users are urged to exercise caution in their online interactions and prioritize digital hygiene practices to mitigate risks.
Addressing the challenges posed by crypto-related cybercrimes requires collective action from public and private sector stakeholders. Individuals can minimize their risk by practicing vigilance and adopting security best practices, while law enforcement agencies and industry players collaborate to identify and mitigate illicit activities in the crypto space. With continued efforts to enhance security and regulatory oversight, the crypto ecosystem can strive towards a safer and more trustworthy environment for all stakeholders.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up