Darknet Website Stole Users' Digital Assets

General News
2024-03-07 22:13:32

Reports are emerging of a potential massive theft from Incognito Market, a darknet site predominantly used for narcotics trade, with users claiming they cannot access their Bitcoin and Monero funds since March 5. This has led to increased speculation about a possible "exit scam" by the platform's operators.


The estimated value of Incognito Market ranges between $10 million and $30 million, as reported by Dark Web Informer. User complaints intensified on March 5, pointing to failed attempts to withdraw cryptocurrencies, stirring concerns over the administrators' intentions.


Incognito's administrator, known as "Pharoah," attempted to mitigate user concerns on Dread, a darknet forum similar to Reddit, attributing the withdrawal problems to recent system updates. Despite these assurances, persistent withdrawal issues and a subsequent post by notable darknet figure Hugbunter have substantiated fears of an exit scam.


Hugbunter reported a conversation with "Pharoah," where a bribe was allegedly offered to downplay the situation on Dread, thus verifying the suspicions of an exit scam. Hugbunter's subsequent warnings on Dread and Reddit aimed to prevent further user losses.


The timing aligns with the Chainalysis 2024 Crypto Crime Report, which notes a resurgence in darknet marketplace revenues in 2023, following the shutdown of Hydra, the previously dominant market. The landscape now sees smaller platforms like Mega Darknet Market filling the void, each carving out its niche in the underground economy.

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