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.
DOJ Charges AurumXchange Operator for Money Laundering Linked to Silk Road Darknet Market
The U.S. Department of Justice (DOJ) has charged Maximiliano Pilipis, the operator of the unlicensed crypto exchange AurumXchange, with money laundering activities connected to the infamous darknet market Silk Road.
Pilipis allegedly facilitated millions of dollars in transactions for Silk Road, which operated as a major darknet platform. According to the DOJ, he could face up to 10 years in prison if convicted.
AurumXchange Indicted by DOJ for Laundering Silk Road Funds
In an ongoing investigation, the DOJ announced charges against AurumXchange and its founder, Maximiliano Pilipis, in a press release on October 28. Authorities claim that Pilipis, 53, ran an unlicensed crypto exchange. It executed over $30 million in transactions linked to Silk Road.
Pilipis is said to have run AurumXchange without a license from 2009 until 2013. This was during the FBI's crackdown on the Silk Road darknet marketplace.
Silk Road, run by Ross Ulbricht known as "Dread Pirate Roberts," was on the Tor network from 2011 to 2013. It enabled anonymous trade in drugs and other illegal goods.
AurumXchange closed in 2013, after Silk Road's shutdown. This raised red flags for the DOJ, suggesting a link between the two platforms.
The DOJ also revealed that Pilipis collected millions in fees for these illegal transactions. This included 10,000 BTC worth over $1.2 million at that time.
In addition to operating without proper registration, Pilipis allegedly failed to adhere to Know Your Customer (KYC) regulations and violated Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws.
DOJ's Stance on Illegal Cryptocurrency Use
The DOJ stated that Pilipis moved his amassed assets, including Bitcoin, in small increments to obscure their origins. He allegedly turned these cryptocurrencies into U.S. dollars. He then funneled the money into real estate in Arcadia and Noblesville, Indiana.
Authorities claim that Pilipis earned hundreds of thousands of dollars but neglected to file a tax return. A federal grand jury has charged him with five counts of money laundering and two counts of willfully failing to file a tax return.
The DOJ has a zero-tolerance policy on illegal cryptocurrency use. It warns that offenders will face severe penalties.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, stated: “Combating the criminal misuse of cryptocurrencies and other digital assets is a critical priority for the Department of Justice.” He also mentioned that the DOJ is collaborating with other federal law enforcement agencies to investigate and prosecute such crimes.
If convicted, Pilipis could face 10 years in federal prison and a $250,000 fine. A federal judge will set the final sentence using U.S. Sentencing Guidelines and other factors.