U.S. Justice Department Seizes Russian-Based Hydra Market In Darknet Crackdown
SAN FRANCISCO (CBS SF/CNN) -- The Justice Department announced Tuesday it has shut down the Hydra Market, a massive digital bazaar where cybercriminals sold hacking tools, drugs and stolen information and where millions of dollars in ransomware payments changed hands.
The seizure of the Hydra servers and cryptocurrency wallets was made Tuesday morning in Germany by the German Federal Criminal Police in coordination with U.S. law enforcement.
In conjunction with the shutdown of Hydra, the department also announced criminal charges against Dmitry Olegovich Pavlov, 30, a resident of Russia, for conspiracy to distribute narcotics and conspiracy to commit money laundering in connection with his operation and administration of the servers used to run Hydra.
"This coordinated action sends a clear message to anyone attempting to operate or support an online criminal enterprise under the cover of the dark web," said Stephanie M. Hinds, U.S. Attorney for the Northern District of California. "The dark web is not a place criminals can operate with impunity or hide from U.S. law enforcement, and we will continue to use our sophisticated tools and expertise to dismantle and disable darknet markets."
Investigators said the criminal marketplace enabled users in mainly Russian-speaking countries to buy and sell illicit goods and services including illegal drugs, stolen financial information, fraudulent identification documents and money laundering. Transactions on Hydra were conducted in cryptocurrency and Hydra's operators charged a commission for every transaction conducted on Hydra.
"The Department of Justice will not allow darknet markets and cryptocurrency to be a safe haven for money laundering and the sale of hacking tools and services," said Deputy Attorney General Lisa O. Monaco. "Our message should be clear: we will continue to go after darknet markets and those who exploit them."
In 2021, Hydra accounted for an estimated 80% of all darknet market-related cryptocurrency transactions, Since 2015, the marketplace has received approximately $5.2 billion in cryptocurrency.
According to the indictment, vendors on Hydra could create accounts on the site to advertise their illegal products, and buyers could create accounts to view and purchase the vendors' products. Hydra vendors offered a variety of illicit drugs for sale, including cocaine, heroin, methamphetamine, LSD and other opioids.
"The darknet has been a key online marketplace for the sale of deadly drugs worldwide," said Administrator Anne Milgram of the Drug Enforcement Administration. "The availability of illicit substances and money laundering services offered by Hydra threaten the safety and health of communities far and wide."
Hydra also featured numerous vendors selling false identification documents. Users could search for vendors selling their desired type of identification document – for example, U.S. passports or drivers' licenses – and filter or sort by the item's price.
