Darknet marketplaces have experienced a resurgence in crypto revenue in 2023, even in the face of a global crackdown. Although they have not reached the same levels as in 2021, darknet markets have seen a slight rebound in their earnings following the closure of the Hydra marketplace in 2022. Blockchain forensics firm Chainalysis reported that fraud shops and darknet marketplaces generated nearly $2 billion in revenue in 2023, a 25% increase from the previous year.
Following the shutdown of Hydra, two new darknet marketplaces emerged in Moscow, aggressively promoting their services. Despite law enforcement efforts globally, there has been a growing demand for illicit services, including money laundering, ransomware, and malware attacks. One of the newly established marketplaces recorded over half a billion in crypto inflows, indicating a strong demand for these illicit activities.
However, Chainalysis notes that no dominant player has emerged in the darknet market ecosystem, as no other platform offers a wide range of illicit products. While the darknet market industry is showing signs of recovery, it has yet to reach the revenue levels it had before Hydra’s closure.
In recent news, the founder of Bitcoin Fog, a crypto mixing service, was found guilty of laundering money connected to illegal drug sales on the dark web. The prosecution argued that Bitcoin Fog played a vital role in concealing over $400 million in transactions, with $78 million directly linked to major darknet marketplaces.
Despite the ongoing crackdown on darknet markets, it seems that these illicit activities continue to thrive as cybercriminals adapt and find new avenues for their operations.