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The biggest Dark Web takedown yet sends black markets reeling

S.J.B.

S.J.B.

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The biggest Dark Web takedown yet sends black markets reeling
Andy Greenberg
Wired
July 14th, 2017

Not since the days of the now-legendary Silk Road has a single site dominated the dark web's black market as completely, and for as long, as the online bazaar known as AlphaBay. And with the news that the site has been torn down by a law enforcement raid—and one of its leaders found dead in a Thai prison—the dark web drug trade has fallen into a temporary state of chaos.

About a week ago AlphaBay, the dark web's largest contraband marketplace, went mysteriously offline. Rumors swirled that it had run off with its customers' money, or was down for maintenance. Then on Thursday, the Wall Street Journal reported that a law enforcement operation spanning threes countries shuttered the site, with Canadian police seizing its servers in Quebec, and US officials seeking the extradition of one of its alleged administrators, Alexandre Cazes, to the United States. Cazes was later found hanging in a Bangkok jail cell in an apparent suicide.

Details around the AlphaBay takedown remain murky. But the news that authorities had permanently wiped it off the web has sent its buyers and sellers scrambling to other outlets for their business, particularly the site's booming trade in narcotics. So far, they've found mostly inhospitable, unstable alternatives.

"It’s been really chaotic," says Nicolas Christin, a professor of computer science and public policy at Carnegie Mellon who has closely tracked the darknet for years. He points to AlphaBay's unprecedented size for a darknet market, estimating that its nearly 300,000 listings of drugs, stolen credit cards, and other contraband brought in—as a conservative estimate—between $600,000 and $800,000 a day in revenue. "When you have a site like AlphaBay going down, it puts a lot of stress on the other players. It’s stress-testing their infrastructures."
Click to expand...

Read the full story here.
 
It's wack a mole. A new site will emerge.
 
That conservative estimate of income I read elsewhere as over $1m/day. When a cool $365 million annual earnings operation is taken down, you can bet there'll be 365 million other people desperate to fill the hole!
 
CFC said:
That conservative estimate of income I read elsewhere as over $1m/day. When a cool $365 million annual earnings operation is taken down, you can bet there'll be 365 million other people desperate to fill the hole!
Click to expand...

Sure people will fill the void. But will there be as much customers as before? I understand the dark web attracted a lot of people, because it seemed safer then buying in real life.
 
one article i read in the last few days seemed to suggest that the more busts/scams there are, the more people hear about these sites, and rather than deter people, it so far has apparently had the opposite effect; even bad publicity is apparently bringing in new customers.

sounds crazy, but it seems that most serious legal risk is carried by the vendors. the more the word gets out,the more customers flock to the DNMs, or so the editorial i read opined.
 
rujex said:
Sure people will fill the void. But will there be as much customers as before? I understand the dark web attracted a lot of people, because it seemed safer then buying in real life.
Click to expand...

It's only one marketplace. It's not the entire darknet, and it's not going to quell the desire for drugs in any way.
 
spacejunk said:
one article i read in the last few days seemed to suggest that the more busts/scams there are, the more people hear about these sites, and rather than deter people, it so far has apparently had the opposite effect; even bad publicity is apparently bringing in new customers.

sounds crazy, but it seems that most serious legal risk is carried by the vendors. the more the word gets out,the more customers flock to the DNMs, or so the editorial i read opined.
Click to expand...

That wouldn't surprise me at all. Publicising these places is the best way to attract new customers.
 
rujex said:
Sure people will fill the void. But will there be as much customers as before? I understand the dark web attracted a lot of people, because it seemed safer then buying in real life.
Click to expand...
I think it's more that you can get reliably reviewed and relatively pure drugs, and the fact that many people don't know anyone in real life they can buy some of these drugs from. Try going down the street and asking everyone you see if they know where to get some 2C-B? Or some ketamine for that matter?
 
Last edited:
Holy shit, Alphabay was still running? I'm amazed it managed such a long streak.

But yeah everyone will settle on a replacement within a few weeks, or a new one will pop up, exactly the same as what happened with SR, and Agora, and SR2.0, etc. There's way too much money to be made, and way too much demand for being able to purchase quality drugs without the bullshit of the street scene.

The king is dead, long live the king....
 
spacejunk said:
one article i read in the last few days seemed to suggest that the more busts/scams there are, the more people hear about these sites, and rather than deter people, it so far has apparently had the opposite effect; even bad publicity is apparently bringing in new customers.

sounds crazy, but it seems that most serious legal risk is carried by the vendors. the more the word gets out,the more customers flock to the DNMs, or so the editorial i read opined.
Click to expand...

Totally agree with you. I have yet to see a DNM article that focuses on personal use buyers, and rarely even mentions the people who are buying the $1m/day in drugs... Anyone who is already buying/using drugs is only going to be more interested after reading an article, even one about the fall of a marketplace. (I'm pretty sure that's how I first got on SR1--read an article and it sounded cool, so I figured out how)

Alphabay was totally on its last legs though, even without government intervention. So much controversy over whether it was secure, and they never integrated new security measures like other markets. I wouldn't say good riddance, but it really doesn't matter, they were replaced before they were gone. Hopefully the new alternatives continue to improve their UI and security.
 
^I saw that too! Fucking nuts! Been operating it as a honeypot for a month too. I've never used Hansa so I have no idea how it was run, but hopefully people were using independent PGP to protect their identities. Theoretically, if it's done right, there shouldn't actually be much user data for LE to collect (I think? Def not a programmer...)
 
After alleged AlphaBay kingpin found dead in Thai jail, authorities announce huge dark web takedown

bb0af20ca6a849cac516a83c04c4b4bf


TO THE outside world, Alexandre Cazes was living a dream life.
The 25-year-old Canadian was living in a villa in Thailand running a multi-million dollar business from his laptop. He had a Lamborghini and a Porsche for himself and a Mini Cooper for his wife. He had more money than he knew what to do with and stashed it away in bank accounts in Thailand, Liechtenstein and Switzerland.

But the veneer of perfection was obliterated when he was arrested earlier this month and days later was found dead in a Bangkok prison cell.
He was the alleged mastermind of AlphaBay, a huge online marketplace selling illicit items like drugs, guns and fraudulent documents which operated on the dark web.

The website was the largest of its kind on the dark web and was built to house more illegal transactions than the infamous Silk Road online marketplace operated by Ross Ulbricht, who is currently serving two concurrent life sentences in a New York prison, sharing showers with El Chapo.

According to authorities, Alexandre Cazes ammased a $29 million fortune through AlphaBay but ultimately he suffered the same fate as the dark web pioneer Ulbricht when US federal agents were able to track his identity via an old hotmail e-mail address and eventually swoop in on his operation.

He is believed to have hanged himself in his cell just over a week ago prior to a scheduled court hearing, Thai police said.

POLICE HIT THE DARK WEB WITH A ONE-TWO PUNCH

When police arrested Cazes they were able to obtain access to his open laptop, and gained administrator-level access to the Tor-hosted AlphaBay site. They were able to take control of all the Bitcoin used in sales on the site and swiftly shut it down on July 5.

Many users then flooded to another major dark web marketplace called Hansa which was largely based in the Netherlands.
What they didn’t know is that Dutch police had already secretly taken control of the market’s server, giving them the ability to identify and track buyers and sellers of illicit goods.

For weeks agents impersonated the administrators in an operation which aimed to establish as many new leads as possible and maximise confusion within drug-buying community on the dark web, according to Dutch cybercrime prosecutor Martijn Egberts.
And it appears to have been a very successful strategy.

“The cryptomarket community (is) spooked,” said dark web researcher Patrick Shortis, of Brunel University in London. “Reddit boards are filled with users asking questions about their orders.”

Cont -

http://www.news.com.au/technology/o...n/news-story/cac0cfa628027cf414dc602bd2b3ec33
 
According to authorities, Alexandre Cazes ammased a $29 million fortune through AlphaBay but ultimately he suffered the same fate as the dark web pioneer Ulbricht when US federal agents were able to track his identity via an old hotmail e-mail address and eventually swoop in on his operation.
Click to expand...

Well that's convenient, isn't it? And of course he kills himself a few days later... who wants to bet there's a bit more to this particular story?
 
Alphabay had one of the worst layouts ive ever seen, and these places usually have basically the same layout every time. Alphabay somehow managed to make it worse and more "scammy" if thats a word.
 
Alexandre Cazes: Who was the AlphaBay founder and how did authorities catch him?

8731270-3x2-700x467.jpg


Canadian Alexandre Cazes was a young IT whiz who said he specialised in everything from web development to encryption services.

The 25-year-old suspected founder of dark net marketplace AlphaBay was arrested earlier this month on behalf of the United States in Thailand, and apparently took his life a week later while in Thai custody, the Justice Department said.

He faced charges relating to narcotics distribution, identity theft, money laundering and related crimes.

While still a teenager, Cazes was believed to have started his first company, EBX Technologies, selling computers and helping small businesses set up their websites.

His IT nous was clear to see; authorities say they have traced him to as far back as 2008, posting advice on a tech forum on how to remove a virus from a digital photo.

Cazes grew up near Montreal and his family said he was a genius.

"An extraordinary young man, with no history, no judicial record," his father Martin Cazes told Canadian news portal Canoe.
"He never smoked a cigarette, never used drugs."

But Cazes was soon to put his IT skills to a sinister use.

According to US prosecutors, EBX Technologies was a front company to, "justify his banking activity and substantial cryptocurrency holdings".

Cazes, 25, moved to Thailand about seven or eight years ago and in September 2014 is alleged to have founded AlphaBay, which was soon to become the world's biggest dark net market.

Until its seizure by US and European authorities, AlphaBay was 10 times bigger than the infamous Silk Road and traded in everything from drugs and chemicals to weapons and fake IDs.

Living the high-life in Thailand

8731454-3x2-700x467.jpg


Known to some as the DeSnake, Cazes was married to a Thai woman, who is believed to be pregnant.

What is the dark net?


For all that is written about the dark net, most people struggle to understand it. Here's a simple, user-friendly explainer of what it is, how it is used, and the questions it raises as we drift deeper into the digital age.
He was living the high-life in Thailand, driving around in $1 million Lamborghini, among other luxury cars, and owning multiple properties.

"He was a computer expert involved with international transactions of bitcoins," Major General Soontorn Chalermkiat, a spokesman for Thailand's Narcotics Suppression Bureau, told news agency AFP.

"He didn't have any business in Thailand but he had many houses."
He also had assets in Cyprus, Liechtenstein, Antigua and Barbuda and Switzerland.

According to court documents, AlphaBay's annual sales were in the hundreds of millions of dollars and Cazes was making his money from commissions.

Earlier this month, authorities began closing in on Cazes and he was arrested in Bangkok on July 5 by Thai police.

At the time of his arrest, Thai police found his laptop open and logged into the server that hosted the AlphaBay website.

8729746-3x2-700x467.jpg


During the search of his laptop, a document was discovered titled Total Net Worth, listing his assets under categories including cash and cryptocurrencies.

By his own assessment, his net worth totalled $US23,033,975.

Brought undone by own mistake

It appears Cazes was ultimately brought undone by his own mistake when left his personal email address visible online.

If you or anyone you know needs help:

Lifeline on 13 11 14
Kids Helpline on 1800 551 800
MensLine Australia on 1300 789 978
Suicide Call Back Service on 1300 659 467
Beyond Blue on 1300 22 46 36
Headspace on 1800 650 890

During investigations, authorities found Pimp_Alex_91 (at) hotmail.com in the header of emails sent to users of AlphaBay who had forgotten their passwords.

They were able to eventually trace that address to their man, Alexandre Cazes.

Cazes was being held in a cell at Bangkok's Narcotics Suppression Bureau and, just hours before he was due to meet prosecutors for talks over his extradition to the US, was found dead.

He was said to have committed suicide.

http://www.abc.net.au/news/2017-07-21/who-was-alphabay-founder-alexandre-cazes/8730680
 
poledriver said:
Alexandre Cazes: Who was the AlphaBay founder and how did authorities catch him?

8731270-3x2-700x467.jpg


Canadian Alexandre Cazes was a young IT whiz who said he specialised in everything from web development to encryption services.

The 25-year-old suspected founder of dark net marketplace AlphaBay was arrested earlier this month on behalf of the United States in Thailand, and apparently took his life a week later while in Thai custody, the Justice Department said.

He faced charges relating to narcotics distribution, identity theft, money laundering and related crimes.

While still a teenager, Cazes was believed to have started his first company, EBX Technologies, selling computers and helping small businesses set up their websites.

His IT nous was clear to see; authorities say they have traced him to as far back as 2008, posting advice on a tech forum on how to remove a virus from a digital photo.

Cazes grew up near Montreal and his family said he was a genius.

"An extraordinary young man, with no history, no judicial record," his father Martin Cazes told Canadian news portal Canoe.
"He never smoked a cigarette, never used drugs."

But Cazes was soon to put his IT skills to a sinister use.

According to US prosecutors, EBX Technologies was a front company to, "justify his banking activity and substantial cryptocurrency holdings".

Cazes, 25, moved to Thailand about seven or eight years ago and in September 2014 is alleged to have founded AlphaBay, which was soon to become the world's biggest dark net market.

Until its seizure by US and European authorities, AlphaBay was 10 times bigger than the infamous Silk Road and traded in everything from drugs and chemicals to weapons and fake IDs.

Living the high-life in Thailand

8731454-3x2-700x467.jpg


Known to some as the DeSnake, Cazes was married to a Thai woman, who is believed to be pregnant.

What is the dark net?


For all that is written about the dark net, most people struggle to understand it. Here's a simple, user-friendly explainer of what it is, how it is used, and the questions it raises as we drift deeper into the digital age.
He was living the high-life in Thailand, driving around in $1 million Lamborghini, among other luxury cars, and owning multiple properties.

"He was a computer expert involved with international transactions of bitcoins," Major General Soontorn Chalermkiat, a spokesman for Thailand's Narcotics Suppression Bureau, told news agency AFP.

"He didn't have any business in Thailand but he had many houses."
He also had assets in Cyprus, Liechtenstein, Antigua and Barbuda and Switzerland.

According to court documents, AlphaBay's annual sales were in the hundreds of millions of dollars and Cazes was making his money from commissions.

Earlier this month, authorities began closing in on Cazes and he was arrested in Bangkok on July 5 by Thai police.

At the time of his arrest, Thai police found his laptop open and logged into the server that hosted the AlphaBay website.

8729746-3x2-700x467.jpg


During the search of his laptop, a document was discovered titled Total Net Worth, listing his assets under categories including cash and cryptocurrencies.

By his own assessment, his net worth totalled $US23,033,975.

Brought undone by own mistake

It appears Cazes was ultimately brought undone by his own mistake when left his personal email address visible online.

If you or anyone you know needs help:

Lifeline on 13 11 14
Kids Helpline on 1800 551 800
MensLine Australia on 1300 789 978
Suicide Call Back Service on 1300 659 467
Beyond Blue on 1300 22 46 36
Headspace on 1800 650 890

During investigations, authorities found Pimp_Alex_91 (at) hotmail.com in the header of emails sent to users of AlphaBay who had forgotten their passwords.

They were able to eventually trace that address to their man, Alexandre Cazes.

Cazes was being held in a cell at Bangkok's Narcotics Suppression Bureau and, just hours before he was due to meet prosecutors for talks over his extradition to the US, was found dead.

He was said to have committed suicide.

http://www.abc.net.au/news/2017-07-21/who-was-alphabay-founder-alexandre-cazes/8730680
Click to expand...

That's a silly mistake to make for a supposed IT genius.
 
"and one of its leaders found dead in a Thai prison"

Holy shit. That's fucked up. I haven't kept up with Darknet happenings since the takedown of Silk Road, but this sounds like a repeat of that whole nightmare. I'm sure another site will pop up to replace it, and another, and another. Keep wasting resources playing Whack-A-Mole with drugs, stupid fucking three-letter agencies. Meanwhile, the people who want to get clean can't even get into a rehab or detox due to unavailability and ungodly high costs. If they gave a fuck about the "drug epidemic" they'd examine the demand side of the issue instead of targeting dealers, of which there's a never-ending supply.

/steps off soapbox
 
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