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US and German Authorities Close Longest-Running Darknet Market, Hydra

Published 06/04/2022, 12:25
Updated 06/04/2022, 13:11
© Reuters.  US and German Authorities Close Longest-Running Darknet Market, Hydra

  • U.S. and German officials have seized the so-called world’s largest and most prominent darknet market, which traffics in illicit goods and services.
  • In 2021, Hydra accounted for an estimated 80% of all darknet market-related cryptocurrency transactions, and since 2015, the marketplace has received approximately $5.2 billion in cryptocurrency.
  • The Hydra Market’s servers were shut down, and German police confiscated cryptocurrency wallets containing $25 million worth of Bitcoin (CRYPTO: BTC).
  • The U.S. Department of Justice announced criminal charges against Dmitry Pavlov, a 30-year-old Russian resident, for conspiracy to distribute narcotics and conspiracy to commit money laundering in connection with his operation and administration of Hydra’s servers.
  • Meanwhile, the U.S. Treasury Department announced sanctions against Hydra Market and a “ransomware-enabling” virtual currency called Garantex, which primarily operates out of Russia.
  • Hydra allegedly offered a wide variety of illegal goods and services to mainly Russian-speaking countries.
  • Its wares included hacking software, fake IDs, and illegal drugs such as heroin, cocaine, and LSD, openly advertised on the site.
  • Garantex, the virtual currency exchange, was founded in 2019 and initially registered in Estonia. According to U.S. officials, most of its operations are now carried out in Moscow, writes Bloomberg.
  • The officials said that more than $100 million in Garantex transactions were associated with illicit actors and darknet markets, including $6 million from the notorious Russian ransomware gang Conti and about $2.6 million from Hydra Market.
  • Photo by ski-life via Pixabay

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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