A recent report from blockchain analytics firm Chainalysis revealed a significant decline in global cryptocurrency sales across darknet markets in 2024, with total revenue dropping by 15% to just over $2 billion in Bitcoin. Fraud shops dealing in stolen goods and counterfeit items also saw inflows of around $225 million.
However, Russia’s darknet market emerged as an outlier, recording a dramatic 68% surge in crypto sales, a stark contrast to the global downtrend.
How Kraken Darknet Market Dominates Russia’s Illicit Economy
While most darknet markets worldwide experienced declining sales, Russia witnessed a surge in crypto transactions, with the “Kraken” darknet market leading the charge. Kraken, unrelated to the legitimate Kraken exchange, became the highest-earning darknet platform, overtaking Mega.
Mega’s revenue dropped by more than 50% year-over-year, while Kraken managed to rake in $737 million in on-chain crypto sales by the end of 2024. Meanwhile, Blacksprut, which previously gained traction alongside Mega, saw its revenue decline by 13.6%.
The rise of Kraken underscores the resilience of Russia’s underground economy, where vendors are becoming more sophisticated in their operations. Many now rely on infrastructure service providers like iKlad.biz and Klad.cc to handle essential functions, from payments processing to hosting.
Evolution of Darknet Markets in Russia
The collapse of Hydra Market in 2022 did not eliminate its criminal network. Instead, the former affiliates regrouped, fueling Kraken’s rapid expansion in 2024. Despite law enforcement crackdowns, the shadow economy continues to thrive.
In December 2024, Russian authorities dealt a significant blow to the Hydra network, sentencing founder Stanislav Moiseyev to life in prison. Fifteen associates also received prison sentences ranging from 8 to 23 years.
Meanwhile, in the U.S., federal agents arrested Taiwanese national Rui-Siang Lin in May 2024. Lin, who allegedly operated Incognito Market, was charged with multiple financial and cyber crimes. Authorities linked him to crypto transactions made through a personal exchange account.
Darknet Vendors Shift to DeFi for Greater Anonymity
The Chainalysis report also highlighted a notable shift in how darknet vendors handle crypto earnings. In the past, centralized exchanges (CEXs) were the primary route for converting crypto to cash. However, in 2024, vendors increasingly moved funds to decentralized finance (DeFi) platforms instead.
DeFi’s appeal lies in its relative anonymity and lack of stringent KYC checks, making it an attractive cash-out method for illicit funds. Retail-level vendors are holding more assets on-chain, while larger, wholesale operators are leaning heavily into DeFi for laundering profits.
FAQs
Q1: What new strategies are emerging in the darknet market ecosystem?
New models such as Telegram-only black markets and platform mergers are on the rise. For instance, Haowang Guarantee, a Telegram-based illicit marketplace, processed $27 billion in illegal transactions before its shutdown in May 2025.
Q2: How is AI being used to detect illicit transactions in crypto and DeFi?
AI systems are increasingly deployed to identify complex money laundering schemes in crypto. For example, Lucinity leverages AI-driven graph analysis to track wallet connections and detect suspicious transaction patterns, providing law enforcement with new investigative tools.
