Anonymous Trading on the Dark Online Marketplace: An Exploratory Study

Introduction

The Deep Web is the portion of the Internet that holds the most sensitive information, such as bank accounts, government records, and private emails. The Surface Web is the main reference point for most people when it comes to the Internet. However, it only accounts for 5% of the web. Any activity you engage in on any online platform can be tracked(Hutcheon & Warren, 2021).Darknet markets are online platforms where cybercriminals can sell or steal data. Due to the nature of the marketplaces, it is difficult to predict when and how organized crimes will occur(Wang et al., 2018). Illegal merchandise such as drugs, weapons, child pornography, and hitman services are being sold through online black marketplaces, which are also known as crypto markets wherein buyers and sellers use different methods to hide their identities(Reksna, 2017).

The hidden service (HS) protocol in The Onion Router (Tor) allows web services to stay secret by distorting the IP addresses of network servers and passing them through various relays within Tor's overlay network utilizing onion routing. These concealed anonymous services are sometimes referred to as onion sites or just onions since they use the onion special top-level domain (TLD). Drug and weapon marketplaces (SilkRoad, Armory) engaged in illegal trade, hacker forums publishing details of victims' identities, terrorist forums attracting large donations, whistleblower sites (WikiLeaks), and fraudulent financial sites (EasyCoin, OnionWallet) engaged in monetary scams are just a few recent examples(Ghosh et al., 2017). Illegal trading on darknet platforms is one expression of serious and organized crime.Around two-thirds of darknet market activity is thought to be related to drugs. Almost every substance, even new psychoactive compounds, is available to customers with little technical knowledge with just a few keystrokes. This trend poses a substantial threat to the health and security of residents and communities(EMCDDA, 2017).

Cryptocurrencies are one of the world's largest unrestrained capitalisms. Approximately one-quarter of bitcoin users and half of the bitcoin transactions are linked to illegal conduct. Bitcoin is involved in over $72 billion in criminal activities each year, which is equivalent to illicit drug trading in the United States and Europe. With widespread interest in bitcoin and the emergence of more opaque cryptocurrencies, the unlawful share of bitcoin activity is decreasing. Cryptocurrencies are facilitating “black e-commerce,” which alters the way the black market functions(Foley et al., 2019).

The anonymous sale of illicit commodities is orchestrated by darknet markets, the bulk of which are cannabis, ecstasy, and cocaine-related products (70 percent). Over the last few years, these internet marketplaces have become increasingly popular for selling and buying narcotics. The most famous market in 2013 was SilkRoad, which produced over 300,000 US dollars per day, whereas the most popular market in 2017 was Alphabay, which generated around 800,000 US dollars per day. This trend toward darknet sales might result in a disruptive shift away from traditional drug distribution routes, reducing governments' capacity to control the drug trade(Calis, 2018). SilkRoad2 was founded in November 2013 as the successor to the well-known market SilkRoad (shut down by the FBI in October 2013). SilkRoad2 soon became the largest darknet market in 2014 due to its brand recognition. SilkRoad2 was compromised in February 2014, resulting in the loss of 2.6 million dollars in bitcoins and a massive dent in the company's reputation. Authorities shut down SilkRoad2 on November 6, 2014, and its administrator was detained(Wang et al., 2018).