In the U.S. prosecutor’s opening statement at the trial of three alleged Darknet drug dealers, she proclaims that this was the only path through this darkness- by shining a light on where the money is being spent. The Darknet is notoriously difficult to penetrate and investigate, so tracking down these dealers required digging deep into their financial records. This method has been successful in other cases involving less sensitive substances such as opioids and black market trade in weapons and counterfeit goods. AsDarkNet Markets continue to grow astronomically in popularity, law enforcement will have to continue innovating ways to catch those who traffic drugs and other
Cryptocurrencies like bitcoin have confounded law enforcement for years. While their use has been criminalized in many cases, it seems the underlying technology is actually quite promising for investigations. For instance, bitcoin garnered attention after being used to Commit the Silk Road e-commerce site and its extensive drug trade. However, as Andy Greenberg found out during his examination of this case, Tor was also integral to Gambaryan’s investigation. Tor allows users to surf the web anonymously by routing their traffic through networks of computers around the world. This makes it incredibly difficult for criminals and intelligence agencies to track or intercept their online activity
Though bitcoin was not originally intended to be used as a means of anonymously purchasing goods and services, the cryptocurrency’s untraceable nature proved to be an appealing feature for those seeking to remain anonymous. Early adopters of bitcoin frequently used it to purchase drugs and other illicit substances online, believing that the cryptocurrency would provide an immune from government scrutiny. As time went on, though, more legitimate uses for bitcoin emerged, including purchasing goods and services from major retailers.
Gambaryan and his team were confident that the arrest of the DEA agent would finally clean up Bitcoin, but it now looks like they might have ruined the entire crypto-currency. The news has resulted in a sharp drop in value for all bitcoins, making it extremely difficult for Gambaryan and his team to salvage their reputation.
The Wow Factor: Bitcoin and the Dark Web
Bitcoin has long been touted as a way to facilitate online drug trafficking, but what many people don’t know is that it also has valuable uses for law enforcement. In this book, we take a look at some of the most interesting cases where Bitcoin was used to investigate and takedown dark web drug kingpins.
The sudden closure of the largest dark web market in history, AlphaBay, left many people wondering what happened to the hundreds of vendors and thousands of buyers who had relied on it. In March 2018, an anonymous person contacted a DEA agent in Fresno, California with information about the identity of AlphaBay’s administrator. With this information at their fingertips, Thai and American agents were able to take down AlphaBay while also seizing Alexandre Cazes’ computer open and unlocked. This was key evidence because if AlphaBay had been encrypted or closed down entirely it would have been difficult for investigators to gather any worthwhile evidence.
When federal agents arrested AlphaBay’s founder, they had no idea he would be so brazen. Instead of hiding in a dark corner, or fleeing the country to avoid capture, Cazes walked right past his pursuers – all 20 of them – as he parked his luxury Porsche at the hotel entrance. This display of power only added to the mystique of AlphaBay, which became one of the most popular platforms for buying and selling drugs online.
Although all of the agents felt a sense of dread as Cazes walked by, it was ultimately a coincidence that he was arrested and later died in custody. The U.S. government provides help to Thai law enforcement in prosecutions of criminals around the world, but it is always important to be meticulous with safety precautions in order to minimize risks and maximize successful operations.
With research and careful reporting, Greenberg has managed to tell the stories of high-profile investigations from the inside. This book gives readers a detailed look at how law enforcement agencies manage such hugely complex investigations, and it is an essential read for anyone interested in crime or policing.
In early 2019, Hansa announced its takeover of AlphaBay, a supposed largest online drug marketplace at the time. The announcement caused a general panic on dark web markets as authorities all over the world looked for ways to take down what was once considered to be an untouchable industry. Two months later, in August 2019, Hansa mounted simultaneous arrests all over the world as part of what appeared to be a sting operation run by law enforcement. The takedowns highlighted just how vulnerable these markets actually were and sent shockwaves through the illegal market ecosystem – proving that even the biggest players can fall if caught by law enforcement.
Although Bitcoin isn’t completely anonymous, it’s important to remember that law enforcement investigations can take a long time. The anonymous tipster who emailed a DEA agent in Fresno about the identity of AlphaBay’s founder was right – but the investigators still had to pull all the threads and fingerprints left on the blockchain and the internet before going after Alexandre Cazes.
Bitcoin is a perfect tool for tracking down criminals and miscreants because it’s incorruptible, transparent and durable. With every transaction publicly logged in the Bitcoin blockchain, law enforcement can follow the money trail to track down criminal backgrounds and whereabouts. Thanks to this valuable tool, countless nefarious criminal organizations have been shut down across the globe – from Silk Road to AlphaBay.
