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.
KuCoin Allegedly Handled Transactions for Canadian Darknet Markets
Canadian federal officials believe that a cryptocurrency exchange based in Seychelles handled transactions for some of Canada’s most popular darknet markets. Court records reveal that the Canadian government’s anti-money laundering watchdog suspects the exchange Pekin Global Limited commonly known as KuCoin assisted its users in purchasing items from Canadian HeadQuarters and We The North Market. These darknet markets primarily sell drugs, stolen data, and various other products.
The documents show that the Financial Transactions and Reports Analysis Centre of Canada (Fintrac) issued a record fine of 19.5 million Canadian dollars to KuCoin in July 2025. KuCoin is one of the world’s most widely used cryptocurrency exchanges. The exchange has appealed the fine claiming it is based on incorrect information. KuCoin argues that the fine is excessively high and came after years without contact from Fintrac. They stated that Fintrac first reached out in 2021 to express concerns.
In their appeal KuCoin criticized Fintrac's methods claiming they did not follow standards of transparency or fairness. The exchange stated that they were not given notice or allowed to respond before the fines were imposed. As of now Fintrac has not commented further on this matter.
Fintrac reported that KuCoin failed to register and report large cryptocurrency transactions. They accused the exchange of not reporting transactions that may be linked to money laundering or terrorist financing.
The Darknet Markets: We The North and Canadian HeadQuarters
KuCoin's appeal highlighted that Fintrac accused them of not reporting 33 suspicious transactions between June 2021 and December 2024, some of which were linked to the darknet markets Canadian HeadQuarters and We The North.
In 2022 Canadian HeadQuarters was shut down after the RCMP arrested a 22-year-old named Chris Tyrone Dracos from Laval who was said to be running the darknet market. Dracos pleaded guilty to credit card theft and other related offenses. He served 90 days in jail and received two years of probation. He also agreed to pay the government 40,000 Canadian dollars after a deal with Canada’s telecommunications regulator which claimed he had violated anti-spam laws.
KuCoin’s Ongoing Battle with Fintrac
KuCoin believes that Fintrac's investigation of the exchange was flawed from the beginning. Originally founded in China and later moved to Seychelles, KuCoin states they were first contacted by Fintrac in 2021. At that time, Fintrac alleged that KuCoin had not registered properly in Canada, which KuCoin denies.
In November 2024, Fintrac claimed KuCoin had failed to register properly in Canada. More accusations followed, alleging the exchange did not report suspicious transactions related to Canadian HeadQuarters and failed to report cryptocurrency transactions worth 10,000 Canadian dollars on nearly 3,000 occasions.
In March 2025, KuCoin received a notice of violation amounting to 19.5 million Canadian dollars. Out of this, 16.5 million dollars was for the alleged failure to report suspicious transactions linked to Canadian HeadQuarters and other darknet markets.
In its appeal KuCoin argues it was not required to register in Canada and that Fintrac has not provided sufficient proof that each of the 33 transactions needed to be reported. They also claim that there is no evidence of reasonable grounds to suspect money laundering or terrorist financing associated with the transactions in question.