Amid reports of an exit scam on the darknet, users of the Incognito Market, primarily used for narcotics trading, fear millions in Bitcoin (BTC) and Monero (XMR) may have been stolen. Major cryptocurrencies BTC and XMR saw significant downturns on Tuesday, March 5, reflecting growing concerns over the alleged scam.
Darknet Market Withdrawal Issues Spark Suspicion
Users of the darknet marketplace reported difficulties in withdrawing their cryptocurrencies, sparking accusations against Incognito Market administrators. Despite reassurances from the administrator known as "Pharoah" on the darknet-based site Dread, withdrawal issues persisted, prompting suspicions of fraudulent activity.
Hugbunter claimed that the administrator of the Incognito Market offered him a bribe
Hugbunter, a prominent figure in dark web security, claimed to have been offered a bribe by Incognito Market's administrator to remove posts regarding the platform's troubles. This revelation further fueled suspicions of an exit scam, as users expressed frustration over potential losses.
Market Turmoil Amid Cryptocurrency Surge
The alleged scam occurred amidst a surge in Bitcoin prices, with the cryptocurrency surpassing its previous all-time high. Monero also saw gains before the revelations, though it has since fallen in value.
Darknet Markets Adapt Amid Regulatory Pressure
The incident highlights the resilience of darknet markets despite regulatory crackdowns. Smaller marketplaces have emerged, catering to specific niches and evolving specialized roles to evade law enforcement.