The darknet, also known as the dark web, is a concealed section of the internet that's inaccessible via standard search engines. You can only access it using special software, settings, or authorization. This area comprises websites and content that are purposely kept hidden from public view.
Accessing darknet requires using Tor Browser, a special web browser that routes your internet traffic through a global network of relays managed by volunteers. This way, it becomes very difficult to trace which websites you're visiting, and these sites won't know where you are located.
When visiting the dark web, use a secure browser like Tor, do not reveal any of your personal information, and don't open suspicious files or links to stay safe.
The Darknet is often utilized for secure communication, discreet information or file sharing, anonymous research without identity exposure, and occasionally for engaging in illicit activities. It is also recognized for hosting underground black markets(darknet markets), whistleblowing platforms, and discussion boards that champion freedom of speech.
While accessing Darknet Markets themselves is typically not against the law in most places, engaging with illicit goods within them is generally considered a crime. On the other hand, some people might visit Darknet Markets for lawful purposes such as research, journalistic work, or simply to explore online communities. It's essential to know the local laws regarding online activities, and be cautious when using these platforms to avoid any potential issues.
Bitzlato Founder Avoids Additional Jail Time After Pleading Guilty to $700M in Illegal Transactions
Bitzlato Founder Avoids Additional Jail Time After Pleading Guilty to $700M in Illegal Transactions
Judge Eric Vitaliano sentenced Legkodymov to time served on July 18, 2024, in a New York District Court. Recognizing the difficult circumstances he had already endured during his 18 months at Brooklyn's Metropolitan Detention Centre (MDC). Vitaliano commented that the court acknowledges it is a terrible place. He referenced two recent detainee murders as a reason for not extending prison sentences.
Legkodymov was arrested in Miami on January 17, 2023. This marked the start of a joint operation by the United States, Spain, Portugal, Cyprus, and Europol. This operation resulted in the shutdown of Bitzlato on January 23, 2023. According to the DOJ, Bitzlato had processed around $4.58 billion in cryptocurrency transactions since May 2018, with a significant amount tied to criminal activities.
Legkodymov denied the accusations, stating that they had implemented strong AML measures and KYC requirements to prevent illicit activities on their platform. However, the DOJ presented evidence that showed numerous instances of suspicious transactions and lack of proper due diligence on users.
As a result of the accusations, Legkodymov faced heavy fines and potential criminal charges for their alleged role in facilitating money laundering and illicit fund transfers. The case highlighted the importance of strict AML and KYC procedures for all financial institutions, including cryptocurrency exchanges, to prevent them from being used for illegal activities.
Bitzlato had a well-known connection with Hydra Darknet Market. A Russian online darknet market that operated until it was shut down in April 2022. Prior to its shutdown, Hydra Market was responsible for generating approximately 80% of darknet market earnings on a global scale. FBI investigations found that Hydra users transferred around $170.6 million in cryptocurrency to Bitzlato wallets from May 2018 to April 2022. Furthermore, an additional $218.7 million was sent by users to non-Bitzlato addresses, which were later transferred to Bitzlato.
Europol says 46% of Bitzlato's assets were tied to crime. This includes money laundering, cyber scams, ransomware, and child exploitation.
Legkodymov expresses his regret and sorrow while pleading guilty.
In December 2023, Legkodymov confessed in a US federal court to running an unlicensed money-transmitting business. He admitted that under his supervision, Bitzlato was utilized for illegal activities such as darknet market transactions and ransomware.
Bitzlato's loose user identification requirements attracted criminals seeking to take advantage of its lenient procedures. Before its closure, it facilitated over $700 million in crypto exchanges with Hydra Market, a major Russian darknet market for illicit goods.
Apart from serving time, Legkodymov agreed to give up any claim to the $23 million in crypto seized by French police during a sting. In court, he expressed remorse for his actions and accepted responsibility as the founder of Bitzlato.
Stating “I realize now as the founder of the company, I could have done more,”
The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) noted that Bitzlato's transactions were closely connected to Binance, a prominent cryptocurrency exchange. Despite Binance founder Changpeng Zhao resigning in late November 2023 as part of a $4.3 billion settlement with U.S. regulators, Zhao was subsequently sentenced to four months in prison for breaching U.S. laws.