From Boom To Bust: The Intriguing Retirement Of Billion-Dollar Darknet Markets

Darknet markets, once thriving billion-dollar enterprises, are now facing an unexpected turn of events as they retire from the scene. The rise and fall of these illicit online marketplaces have captivated the attention of internet users worldwide. In this article, we delve into the intriguing journey of these darknet markets, exploring the factors that have led to their sudden decline and retirement. Join us as we unravel the mysteries behind their boom and subsequent bust, shedding light on the changing landscape of underground online trade.

Reasons Behind Darknet Market Closures: Retirement Over Scamming Customers

Darknet markets are hidden websites where people buy and sell illegal things like drugs and hacking tools. There are many of these markets, and they make a lot of money. Sometimes, the people who run these markets suddenly disappear, taking all the money that customers have paid. This is called an "exit scam." Other times, the police find the websites and shut them down. In some cases, they also arrest the people who run the markets. One famous example is the Silk Road, the best darknet market, which was closed by the FBI in 2013, and its founder was arrested.

1. They Have Earned Sufficient Money

Operating a darknet market is undeniably challenging and stressful. Market operators must attract customers, address complaints, and maintain infrastructure while constantly fearing arrest. Lucrative as it may be, holding onto cryptocurrency gains can amplify financial success. However, there comes a time when monetary rewards alone are insufficient.

For instance, in the beginning of 2021, Joker's Stash, the top marketplace for stolen credit cards, decided to retire. Study revealed that the person running it might have retired as a billionaire in Bitcoin. This was possible because the site made over $400 million in sales, and the value of bitcoin was rising.

In October 2021, the biggest darknet market called White House Market decided to shut down. It had been running since 2019 and had a wide range of illegal items for sale. It's estimated that they made over $100 million in total sales. The market's operator explained their decision to retire on a darknet forum.

2. The Chances Of Getting Caught Have Increased Significantly

Police have been successful in catching darknet market operators. They mostly go after big and established darknet market links. Some markets choose to close on their own to avoid getting caught by the police for too long.

This could be the reason why ToRReZ Market, one of the best darknet markets, decided to retire in December 2021. With White House Market closing down two months prior, ToRReZ became one of the top darknet markets. The operator of ToRReZ may have mentioned this in a forum post when announcing their retirement.

“After 675 days of presence on the darknet, we have decided to close our door for good. […] While choosing a new market, please use your common sense. I would personally avoid any “established” market as the older they get, the bigger chance of collapsing is.”

3. Other Cybercriminals Are Forcing Them To Pay Money

In November 2021, a well-known darknet market called Cannazon, which focused on selling cannabis, made a surprising announcement that it was closing down. The reason behind this decision was a massive cyber attack known as a distributed denial-of-service (DDoS) attack. This attack overwhelmed the market's website with excessive traffic, causing it to go offline. As a result, the owners of Cannazon chose to retire the market.

Sometimes, rival markets launch attacks to gain more customers. Other times, it's just extortion. In 2019, Dream Market had to close due to a DDOS attack, where the attacker demanded a $400,000 ransom.

4. Personal Circumstances Have Changed

Many people's personal lives are affected by various factors, including global pandemics. This also applies to darknet market operators. For example, UniCC, a popular darknet marketplace for stolen credit cards, recently announced its retirement on a carding forum. UniCC had become the market leader after Joker's Stash retired and had achieved impressive sales of $358 million.

The UniCC operator mentioned health problems as the main reason for closing the market in the notice.

5. Arrested, Not Retired: Darknet Market Operators Caught In Action

Darknet market closures can be deceiving. For instance, when Hansa market was closed in 2017, it was actually being run by investigators for weeks. The operators were arrested earlier, but it was kept secret to gather more information on users. This was done in coordination with the takedown of another market, AlphaBay, to track users who switched to Hansa. Such incidents have created suspicion among darknet users, making them wary of law enforcement involvement in every closure.

Just ten days after UniCC announced it would close down (but before the planned date), news came out that Andrey Sergeevich Novak, the alleged operator of the site, had been detained by Russia's Federal Security Service (FSB). It's not clear if the arrest was a response to the retirement announcement or part of a broader operation to gain control of UniCC.

Luxsocks, which is linked to UniCC, showed a notice from Russia's Ministry of Internal Affairs.

Why are These Darknet Markets Avoiding Exit Scams?

When a darknet market decides to close, some may choose to scam their customers. However, in the last six months, most closures have been planned and organized retirements. Customers are informed in advance and allowed to withdraw their money.

One reason for this change could be that having a good reputation is now more important on the dark web. In a place where trust is rare, a person's past actions matter if they want to continue doing business there.

For instance, in August 2021, the Alphabay marketplace was reopened by its previous owner known as "DeSnake." It had been closed down four years ago during a large-scale police operation. The owner was able to verify their identity using a special code, which made the reopening of the market more credible.

Torrez's retirement seems to be driven by this motivation. In a forum post in December 2021, the operator hinted at a future comeback with a new project.

Moreover, a darknet market operator may find an exit scam less appealing after amassing substantial wealth, especially when considering the potential backlash from their customers.

What's in Store for Darknet Markets?

Are darknet markets ending? Unlikely. Sellers and buyers are exploring other markets to continue their transactions. Darknet markets are profitable, and retirements show operators can succeed without getting caught.

But, converting the money they earned from their illegal activities will become more difficult. With stricter regulations on cryptocurrency businesses like crypto exchanges, it is harder to hide and clean the money. Blockchain analysis tools also make it challenging for darknet market operators to use their earnings, as investigators and exchanges can track and trace the funds.