HomeNewsMillions in BTC, XMR Vanish in Darknet Market Exit Scam - Details

Millions in BTC, XMR Vanish in Darknet Market Exit Scam – Details

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  • On March 5, user accusations towards Incognito Market’s administrators raise concerns over operational trustworthiness.
  • Incidents at Incognito Market emphasize the instability and security risks inherent in darknet markets.

Issues emerged on Incognito Market, a darknet platform recognized for its narcotics transactions, as users experienced troubles in withdrawing Bitcoin (BTC) and Monero (XMR).

The challenges sparked concerns over a potential “exit scam,” a deceitful strategy in which market operators abscond with the customers’ assets. With an estimated worth of $10 million to $30 million, as reported by Dark Web Informer, Incognito Market has stood out as a significant entity in the realm of illicit online commerce.

Source: Dark Web Informer/X

The issue intensified on March 5, as users started leveling allegations against the administrators of the marketplace. Individuals encountered obstacles while trying to withdraw their digital currencies, which increased doubts regarding the marketplace’s operational integrity. These developments not only cast doubt on the trustworthiness of Incognito Market but also highlighted the instability and frequent insecurity associated with darknet markets.

Dark Web Informer on X

In response to the concerns and accusations, Incognito’s administrator, known by the alias “Pharoah,” stepped in to calm users. Through a statement on Dread, a darknet-based communication platform, he assured that the withdrawal problems were the result of changes in the withdrawal systems.

However, this explanation failed to assuage doubts, especially when additional reports continued to highlight persistent withdrawal problems, pointing to the possibility of a deeper scam.

The situation took an even more suspicious turn when a well-known dark web security expert, Hugbunter, revealed on Dread to have received a bribe offer from “Pharoah”. The goal was to remove negative posts about Incognito, an action that, if true, only heightens suspicions of an “exit scam”.

Source: Reddit

This scandal comes at a time when the value of Bitcoin and Monero has seen significant increases, with Bitcoin reaching new all-time highs and Monero also experiencing gains.

On theother hand, a recent report from Chainalysis has shed light on the overall outlook for dark markets, revealing revenues of at least $1.7 billion in 2023. This data indicates a recovery of the sector following the closure of Hydra, the world’s largest dark market, by authorities the previous year.

Although Hydra has not been completely succeeded by any single platform, numerous smaller marketplaces have found success by focusing on particular segments and embracing unique functions, with Mega Darknet Market at the forefront, boasting over $500 billion in cryptocurrency transactions.

This array of developments reflects the complexity and challenges inherent in the world of black markets and cryptoeconomics. As some seek to exploit these spaces for illicit purposes, the global community continues to struggle to find balances that allow for technological innovation without compromising security and legality

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628