Dozens of ‘Dark Market’ websites seized as part of Silk Road 2.0 investigation

NEW YORK — Dozens of dark market websites offering a range of illegal goods and services for sale on the Tor network went dark Thursday following a coordinated international law enforcement action. The seizure of these dark market websites, including Silk Road 2.0, are the result of an extensive investigation by U.S. Immigration and Custom Enforcement's (ICE) Homeland Security Investigations (HSI), the FBI and law enforcement agencies of approximately 16 foreign nations working under the umbrella of EUROPOL's European Cybercrime Centre (EC3) and Eurojust.

The seizures follow the arrest Wednesday of Blake Benthall, aka "Defcon" for his alleged role in operating the Silk Road 2.0 website. This action constitutes the largest law enforcement action to date against criminal websites operating on the Tor network, a special network of computers on the Internet designed to conceal the true IP addresses of the computers on the network.

HSI Executive Associate Director Peter Edge, Leslie R. Caldwell, assistant attorney general of the Justice Department's Criminal Division, Preet Bharara, U.S. attorney of the Southern District of New York, and George Venizelos, assistant director in charge of the FBI New York made the announcement.

Manhattan U.S. Attorney Preet Bharara said: "As illegal activity online becomes more prevalent, criminals can no longer expect that they can hide in the shadows of the ‘dark web.' We shut down the original Silk Road website and now we have shut down its replacement, as well as multiple other ‘dark market' sites allegedly offering all manner of illicit goods and services, from firearms to computer hacking. In coordination with domestic and international law enforcement agencies, we will continue to seize websites that promote illegal and harmful activities, and prosecute those who create and operate them."

Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division said: "It is a plain fact that criminals use advanced technology to commit their crimes and conceal evidence – and they hide behind international borders so they can stymie law enforcement. But the global law enforcement community has innovated and collaborated to disrupt these ‘dark market' websites, no matter how sophisticated or far-flung they have become."

"In today's world, we do everything online from banking to grocery shopping. In much the same way, criminals have taken their illicit business to the ‘Tor' network. However, websites that offer everything from drugs to illegal services on these black-market sites are not out of reach of law enforcement, as today's announcement shows," said George Venizelos, assistant director in charge of the FBI New York. "We will continue to work with law enforcement at home and abroad to investigate, disrupt, and dismantle illicit networks that pose a threat in cyberspace."

According to the forfeiture complaint and other public documents:

This seizure operation targeted dozens of dark market website addresses and computer servers operating on what is known as "The Onion Router" or Tor network, part of the Internet designed to make it practically impossible to physically locate the computers hosting or accessing websites on the dark market sites. These sites were all operating online black markets, openly advertising on their home pages and offering to sell a variety of illicit goods and services to customers in the United States and elsewhere. The advertised goods and services included, among other things: illegal narcotics; firearms; stolen credit card data and personal identification information; counterfeit currency; fake passports and other identification documents; and computer-hacking tools and services.

The dark market websites were designed to facilitate illicit commerce by providing anonymity to users, in at least two ways. First, the dark market sites were only accessible to users of the Tor anonymizing network. Second, the dark market sites accepted payments for their illicit goods and services in Bitcoin or similar electronic currency designed to be as anonymous as cash. The operation involved the seizure of over 400 Tor website addresses – known as ".onion" addresses – as well as the servers hosting them.

Examples of the websites seized in the operation include:

• "Pandora" (pandora3uym4z42b.onion), "Blue Sky" (blueskyplzv4fsti.onion), "Hydra" (hydrampvvnunildl.onion), and "Cloud Nine" (xvqrvtnn4pbcnxwt.onion), all of which were dark markets similar to Silk Road 2.0, offering an extensive range of illegal goods and services for sale, including drugs, stolen credit card data, counterfeit currency, and fake identity documents.
• "Executive Outcomes" (http://iczyaan7hzkyjown.onion), which specialized in firearms trafficking, with offerings including assault rifles, automatic weapons, and sound suppressors. The site stated that it used "secure drop ship locations" throughout the world so that "anonymity [was] ensured" throughout the shipping process, and that all serial numbers from the weapons it sold were "remove[d] . . . and refill[ed] with metal."
• "Fake Real Plastic" (http://igvmwp3544wpnd6u.onion), which offered to sell counterfeit credit cards, encoded with "stolen credit card data" and "printed to look just like real VISA and Mastercards." The cards were "[g]uaranteed to have at least $2500 left on [the] credit card limit" and could be embossed with "any name you want on the card."
• "Fake ID" (http://23swqgocas65z7xz.onion), which offered fake passports from a number of countries, advertised as "high quality" and having "all security features" of original documents. The site further advertised the ability to "affix almost all kind of stamps into the passports."
• "Fast Cash!" (http://5oulvdsnka55buw6.onion) and "Super Notes Counter" (http://67yjqewxrd2ewbtp.onion), which offered to sell counterfeit Euros and U.S. dollars in exchange for Bitcoin.

The seizures are the results of a joint effort by the following agencies: HSI and its Cyber Crimes Center and Chicago-O'Hare Field Office, the FBI and its New York Special Operations and Cyber Branch, and the Drug Enforcement Administration's (DEA) New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the Internal Revenue Service, the New York City Police Department, the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, the Office of Foreign Assets Control, and the New York Department of Taxation. The following agencies also contributed to the investigation: the Department of Justice's Computer Crime and Intellectual Property Section and the Office of International Affairs, law enforcement authorities of Bulgaria, the Czech Republic, Finland, France, Germany, Hungary, Ireland, Latvia, Lithuania, Luxembourg, the Netherlands, Romania, Spain, Sweden, Switzerland, and the United Kingdom, whose actions have been coordinated through Eurojust and EUROPOL's EC3. The investigation remains ongoing.

The Department of Justice Criminal Division's Computer Crime and Intellectual Property, Organized Crime and Gang, and Narcotics and Dangerous Drug Sections and the U.S. Attorney's Office for the Southern District of New York are prosecuting these cases.