YEREVAN (CoinChapter.com) – The German law enforcement authorities, in collaborated efforts with their counterparts in the United States (US), have cracked down on Hydra, the largest darknet marketplace.
According to reports, Hydra served as a platform for several illegal activities. People used it to trade narcotics, launder money, and pay for various illicit services. Along with the said unlawful activities, the platform also facilitated about $5.2 billion in illegal crypto transactions. The U.S. Department of Justice confirmed the news in an official press release.
“The Department of Justice will not allow darknet markets and cryptocurrency to be a safe haven for money laundering and the sale of hacking tools and services,”
Deputy Attorney General Lisa O. Monaco said regarding the development.
In addition, the German Federal Criminal Police seized cryptocurrency wallets containing $25 million in Bitcoin (BTC) from Hydra.
Secretary of State Anthony Blinken noted that the U.S. has also moved to sanction Hydra. In addition, the U.S. Treasury has announced a similar action against Estonia-based crypto exchange Garantex for its alleged role in facilitating illegal crypto transactions.
U.S. authorities also announced criminal charges against Dmitry Olegovich Pavlov, a 30-year old Russian resident, for conspiracy to distribute narcotics and conspiracy to commit money laundering. Pavlov also allegedly operated and administered the servers used to run Hydra.
The United States is sanctioning the world’s largest darknet market for Russian speakers, Hydra, and the virtual currency exchange Garantex. Today’s action, coordinated with 🇩🇪, demonstrates our commitment to continue disrupting ransomware infrastructure and actors.
— Secretary Antony Blinken (@SecBlinken) April 5, 2022
Are Russians relying on crypto amind rising sanctions?
Besides being the largest darknet marketplace, Hydra is also the oldest in the space.
The latest crackdown comes amid increasing sanctions against Russia at the backdrop of its invasion of Ukraine. The United States and its European partners have levied strict penalties against Russian oligarchs and their companies. As a result, Russians seem to be relying on cryptocurrencies and the dark web to evade the penalties.
In 2021, Hydra accounted for an estimated 80% of all darknet market-related cryptocurrency transactions. It comes as no surprise that it would sooner or later catch the attention of law enforcement authorities.
“The successful seizure of Hydra….dismantled digital infrastructures which had enabled a wide range of criminals – including Russian cyber criminals, the cryptocurrency tumblers…,”
FBI Director Christopher Wray said.
According to Jim Lee, the Chief of Internal Revenue Services (IRS) Criminal Investigation, their Cyber Crimes Unit used its cryptocurrency tracking expertise to help take down this site and identify the criminal behind it.
Illegaler #Darknet-Marktplatz „Hydra Market“ – die @GStA_FFM_ZIT und das #BKA haben heute Morgen die in Deutschland befindliche Serverinfrastruktur sichergestellt und abgeschaltet. Bei „Hydra Market“ handelt es sich um den mutmaßlich umsatzstärksten illegalen Marktplatz weltweit. pic.twitter.com/0jsLn2NYtu
Confirming the news on their part, German officials said Hydra housed over 19,000 vendors and about 17 million registered buyers who used cryptocurrencies to trade on the platform. The Office of Foreign Assets Control investigation also published a list of over 100 crypto addresses used for illegal transactions.
Fighting the darknet is an uphill task. With Hydra now taken down, it is only a matter of time before it gets replaced by one of the other players. Unfortunately, such activities add fuel to the flames set by anti-crypto brigades across the globe.
Yerevan-based Editor and writer focusing on topics about cryptocurrencies, NFTs, politics, and international relations. Having completed his Bachelor's and Master's degrees from Delhi's Jawaharlal Nehru University, he urrently works as a reporter at CoinChapter.
LAGOS (CoinChapter.com) — A new study has found that the adoption of cryptocurrency will continue to rise and the...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.