Reports of darknet market ‘exit scam’ potentially result in millions of BTC and XMR being stolen.

Users of a prominent underground online marketplace claim that they are unable to withdraw Bitcoin (BTC) and Monero (XMR) as of March 5, raising concerns of an “exit scam.” The marketplace, known as Incognito Market, is primarily used for trading illegal drugs and is estimated to be worth between $10 million and $30 million. The accusations against the marketplace administrators started to emerge on March 5 when users reported issues with their cryptocurrency withdrawals. In response, the administrator of Incognito Market, known as “Pharoah,” posted on the dark web-based platform Dread to reassure users that the problems were due to changes in the withdrawal systems. However, the continued reports of withdrawal issues, along with a post from a well-known dark web security expert and administrator named Hugbunter, seem to confirm the suspicions of an exit scam. Hugbunter claimed to have been offered a bribe by Pharoah to remove any negative posts about Incognito Market. The alleged exit scam coincides with a surge in the value of Bitcoin, which recently surpassed its previous all-time high and reached over $69,200. Monero has also experienced gains in the past week but has since fallen to $142.01. In a report released in late February, it was revealed that darknet marketplaces generated at least $1.7 billion in revenue in 2023, rebounding from a decline in 2022 when the largest darknet marketplace, Hydra, was shut down by authorities. While no single marketplace has replaced Hydra, smaller marketplaces are thriving by focusing on specific niches and developing specialized roles. The Mega Darknet Market is leading the pack with over $500 billion in crypto inflows.