Darknet Exit Scams Rock Crypto World

Unconfirmed reports of an exit scam on a major darknet marketplace have rattled the cryptocurrency market, leading to potential instability. Users claim they are unable to withdraw their bitcoins, raising concerns about the security and reliability of such platforms.
 

Valued between $10 million and $30 million according to Dark Web Informer, the Incognito market has faced user complaints since yesterday regarding failed withdrawal attempts.

OrdiZK Bridge Project Accused of $1.4M Rug Pull

A new cross-chain bridge project called OrdiZK has also been accused of pulling an exit scam and making off with $1.4 million in user funds.

According to blockchain security firm CertiK, the project's deployer account suddenly dumped its OZK token on decentralized exchanges, crashing the price 99%. 
 

CertiK alleges the deployer contract then removed ether from OrdiZK's project contracts, leaving team-controlled wallets holding the $1.4 million. OrdiZK's website and social media presence have been scrubbed, strengthening suspicions of foul play.

A week ago, the OrdiZK team had instructed users to migrate tokens ahead of a planned wallet upgrade. But many are now calling it an elaborate exit scam setup. 

Incognito Darknet Market Users Fear Exit Scam

Meanwhile, users of the darknet marketplace Incognito are raising similar exit scam alarms after being unable to withdraw Bitcoin and Monero from the platform since March 5th. 

Valued between $10-30 million and known for drug trading, Incognito initially claimed withdrawal issues were just temporary system upgrades. But a site admin later admitted receiving a "bribe" offer to cover up an exit scam.
 

A well-known darknet observer wrote: "I can 100% confirm the exit scam now...My warning here will not make a difference to funds already lost to Incognito, but hopefully, this will be enough now to try and ensure users stay clear and avoid losing more." 

Surge in Darknet Crypto Crimes

The two alleged exit scams come amid a recent boom in darknet cryptocurrency-based crimes. Blockchain data platform Chainalysis reported darknet markets raked in at least $1.7 billion in crypto revenue in 2023, rebounding after major takedowns the previous year.

While no single darknet market has replaced the massive Hydra bazaar since its shutdown, Chainalysis found smaller cyber-criminal venues are thriving by serving specific niches and taking on specialized roles in illicit ecosystems. 

The apparent OrdiZK and Incognito Market incidents highlight the continued risks of cryptocurrency exit scams and the prevalence of crypto-laden darknet crimes.

For investors and users, extreme caution is warranted when engaging with any lightly-vetted projects or platforms in this realm.