Fears of Exit Scam Escalate as Withdrawals Freeze at Incognito Darknet Market
Summary:
Users of the dark web marketplace, Incognito Market, reported an inability to withdraw Bitcoin and Monero, leading to suspicions of a potential exit scam. The site's administrator dismissed concerns as system upgrades. However, ongoing withdrawal issues have seemingly confirmed the scam. Notably, this coincides with a significant surge in Bitcoin value.
In the underground dark web marketplace called Incognito Market, customers report being unable to extract Bitcoin (BTC) and Monero (XMR) since Tuesday, March 5, leading to concerns of a potential "exit scam". This marketplace primarily deals with illegal drug trade and is estimated to be worth between $10 and $30 million, according to cyber threat intelligence firm Dark Web Informer. Since March 5, users have complained about their inability to remove cryptocurrency leading to growing suspicions against the site's administrators.
An image was captured of a user warning others about an exit scam on the dark web forum Dread. Source: Dark Web Informer/X. These reports even prompted a response from "Pharoah", an administrator for Incognito, who reassured users on Dread, the darknet's equivalent to Reddit, that the irregularities were only due to enhancements in the withdrawal mechanisms of Incognito.
They added, “During the early stages of this upgrade, there could be a temporary impact on functionality since the servers simultaneously handle old data synchronization and new requests." (Dark Web Informer).
However, ongoing complaints about withdrawal problems and a post by a renowned dark web security detective and administrator on Dread have essentially verified the "exit scam". "Pharoah," Hugbunter claimed in a Dread post, has offered them a "bribe" to eliminate any postings regarding Incognito on Dread.
“I can confirm the exit scam without a doubt now,” they stated. “My warning here won’t return the lost funds to Incognito users, but I hope it'll at least discourage any potential users from parting with more funds,” Hugbunter added. This warning was also shared on Reddit. Source: Reddit.
This alleged exit scam coincides with the Bitcoin surge that recently crossed its previous record peak of $68,990 to touch a new high of $69,200. According to Chainalysis, darknet market-related digital currency crimes are on an upward trend in 2023, with $1.7 billion in revenue.
Monero also experienced an uptick last week, hitting $151.74 over seven days, although it has since dropped to $142.01. In its 2024 Crypto Crime Report, Chainalysis disclosed that darknet markets garnered at least $1.7 billion in revenue in 2023, a recovery from 2022 when authorities dismantled the Hydra, the largest darknet market.
Though Hydra wasn't succeeded by a single market, the report showed thriving smaller markets serving distinct segments and progressively specializing. Mega Darknet Market was singled out by Chainalysis as leading the crowd, with more than $500 billion in cryptocurrency inputs.
Published At
3/6/2024 4:41:02 AM
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