[BreachExchange] Germany Closes Russian Darknet Marketplace Hydra

[Matthew Wheeler]

https://www.ibtimes.com/germany-closes-russian-darknet-marketplace-hydra-3462317

Germany Closes Russian Darknet Marketplace Hydra

By Femke COLBORNE

04/05/22 AT 7:21 AM


German police said Tuesday they have taken down Russian-language illegal
darknet marketplace Hydra, the largest such network in the world, and
seized bitcoins worth 23 million euros ($25 million).

Founded in 2015, Hydra sold illegal drugs but also stolen credit card data,
counterfeit currency and fake identity documents, masking the identities of
those involved using the Tor encryption network.

The marketplace had around 17 million customer accounts and over 19,000
vendor accounts, according to the BKA federal police.

"The Hydra market was probably the illegal marketplace with the highest
turnover worldwide" with sales amounting to at least 1.23 billion euros in
2020 alone, it said in a statement.

Investigators have taken control of Hydra's servers in Germany and the
marketplace has been "shut down", the BKA said.

Suspects are being investigated for "operating criminal trading platforms
on the internet on a commercial basis", the BKA said.

Investigators do not know whether Hydra also has servers in other countries
but "assume this was the main hub" of the network's infrastructure, a
spokesman for Frankfurt prosecution service's internet crime office ZIT
told AFP.

Investigations into the illegal marketplace started in August 2021 and also
involved several US authorities, according to the BKA.

The "Bitcoin Bank Mixer" provided by the platform, a service for concealing
digital transactions, had made investigations especially difficult, it
added.

The BKA said it had published a seizure banner on the marketplace's website.

Sales in the Hydra marketplace amounted to at least 1.23 billion euros in
2020 alone, according to German police

Sales in the Hydra marketplace amounted to at least 1.23 billion euros in
2020 alone, according to German police Photo: AFP

The secret "darknet" includes websites that can be accessed only with
specific software or authorisations, ensuring anonymity for users.

Such networks have faced increased pressure from international law
enforcement after a boom in usage during the coronavirus pandemic.

The United States, Russia, Ukraine and China dominate in terms of value
both sent to and received from darknet markets, according to a 2021 report
from blockchain forensics firm Chainalysis.

Hydra accounted for 75 percent of sales in the global darknet market in
2020, the report said.

"Hydra is a big driver of Eastern Europe's unique crypto crime landscape.
Eastern Europe has one of the highest rates of cryptocurrency transaction
volume associated with criminal activity," it said.

The marketplace had become particularly popular with users by developing
creative delivery methods, the Chainalysis report added.

"Hydra has developed uniquely sophisticated operations, such as an
Uber-like system for assigning drug deliveries to anonymous couriers, who
drop off their packages in out-of-the-way, hidden public locations,
commonly referred to as 'drops'," it said.

"That way, no physical exchange is made, and unlike with traditional
darknet markets, vendors don't need to risk using the postal system."

A German-led police sting also last year took down notorious darknet
marketplace DarkMarket, which had nearly 500,000 users and more than 2,400
vendors worldwide.

The marketplace had offered for sale "all kinds of drugs" as well as
"counterfeit money, stolen and fake credit card data, anonymous SIM cards,
malware and much more", prosecutors said.
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