Regulated to illegal: which items are within reach for crypto holders

It is no secret that crypto has lined the pockets of multiple users of the Dark Web. There are some common items where crypto usage is a shortcut to regulated or even illegal items. 

This article should not be considered advice or solicitation or endorsement, and has been created for research purposes. The author and the publication will not be responsible for illegal behaviors based on any given information within. 

Crypto has been used in multiple ways, with various levels of secrecy, to acquire restricted, illegal, or downright immoral items. Illicit commerce is only a small share of crypto-related crimes, and is in fact not exclusive to using crypto for payments. But the confidential nature of some assets helps illicit trade. 

Semi-legal or restricted items still sell for easily accessible coins

The most harmless way to break civil regulations would be to turn to online pharmacies. Restricted or regionally-approved medications can be acquired for digital assets, often using BTC or the most accessible tokens like Litecoin. In theory, those tokens can be anonymously used by anyone, and easily acquired by an anonymous gift card. 

Also Read: 2024 sees nearly $1.4 billion in crypto thefts so far

A little more risk may be taken for online entheogen markets and grow shops. Those shops have been around since the beginning of the crypto boom, and usually accept a very old-fashioned selection of coins – BTC and ETH, but often LTC and DOGE. 

Even regular users can get a taste of the digital goods sold for crypto only. Most vendors will stick to BTC, ETH or USDT in exchange for MEV or sandwich bots, sniping bots or other services that promise to automate trading and produce profits.

Dark markets branch into physical items and digital crime

Diving into dark markets reveals a new selection of products whose sole purpose may be crime of various sorts. A recent report by TRM Labs exposed the approach of Empire Market, one of the last big-scale dark web stores. 

Empire Market existed between 2018 and 2020, helping to carry out 4 million transfers between counterparties, and $430M in purchases. While the sum itself was small compared to the size of pure crypto crime, the selection of products led to serious offenses for the store’s founders. 

Also read: The Philippines’ DOJ charges two Russians for alleged involvement in $7 million crypto heist

In addition to restricted substances, the store carried counterfeit items, fake documents, counterfeit currency. Digital items included data hauls from leaks and hacks, as well as spyware and malware. Empire Market appeared just in time to replace AlphaBay, a previously defunct store seized by the authorities. 

There are multiple opportunities to move crypto after going through a dark market. Tornado Cash is still the go-to mixer, still operational despite the arrest of its founder, Alexey Pertsev. Most dark web actors prefer a simple approach – exchanging through markets that still don’t require KYC. An anonymous swap can remain untraceable, especially if using confidential currencies with veiled transactions. 

While blockchains are generally transparent, not all funds can be fully traced beyond a certain point of mixing, decentralized swaps or other techniques to cover tracks. 

Leaked data is among the most actively traded items

Leaked data often appears on various markets, in exchange for BTC payments. The databases include crypto exchanges, but also the data of government agencies and confidential personal information. 

As law enforcement has targeted dark web stores, the trade has also shifted to other media, including chats. The Telegram app is also a venue for purchasing restricted items or user data, as well as malware. The platform’s user base is highly aware of using crypto, and is not shy about listing its darknet channels . 

Darknet shops have appeared through the chap app, using escrow services. Shops include counterfeit currency or other darknet items. Some of the most active channels sell various software products or accounts. In some cases, crypto payments are asked for various abusive schemes or software. 

Multiple Telegram channels operate on account sales, stolen logins, card information, or other software and data. Channels also exchange stolen stimulus checks and other small-scale fraud such as gift card resales to facilitate phone or phishing crimes. 

So far, Telegram remains unregulated, as its users are still below the scope for monitoring in the EU. This allows previously watched spaces to go under the radar, with personal deals in crypto. Some of the channels also utilize the advertising opportunities, tapping additional Toncoin earnings. 

Telegram channels also offer training in various forms of hacking, malware, abuses and targeting cards. More than 50% of the channels are Russian-speaking, though there is crossover between vendors and channels that offer their exploit technology.

Cryptopolitan reporting by Hristina Vasileva