As discussed in our prior memorandum, on May 23, 2025, OFAC issued General License No. 25 (“GL 25”), easing most of the longstanding sanctions on Syria. Following the fall of the Assad regime in December 2024, OFAC took actions over the course of 2025 to remove the comprehensive economic sanctions on Syria. OFAC’s actions also targeted the cartels’ use of timeshare fraud schemes that target elderly Americans. Highlighting the global scope of OFAC’s counternarcotics sanctions, OFAC published in March 2025 a “Counternarcotics Sanctions Heat Map” showing OFAC designations not only in Latin America (Mexico, Colombia, Peru), but also in the United Arab Emirates (“UAE”), Switzerland, Thailand, and China.
Furthermore, “prosecutors maintain discretion,” if a company is not eligible for a declination, to “determine the appropriate resolution including form, term length, compliance obligations, and monetary penalty.” On May 12, 2025, the Criminal Division revised its Corporate Enforcement and Voluntary Self‑Disclosure Policy to provide that companies that fully cooperate, timely and appropriately remediate, and have no aggravating circumstances will not be required to enter into a criminal resolution. These subject areas were expanded to include corporate sanctions offenses, trade and customs fraud, and cartel/TCO‑related misconduct. To align with its refocused areas of enforcement priorities, on May 12, 2025, DOJ revised its Corporate Whistleblower Awards Pilot Program to add additional subject matter areas that a tip must pertain to in order to qualify for a whistleblower award. As discussed in our prior memorandum, on May 12, 2025, then-Head of DOJ Criminal Division, Matthew R. Galeotti, released a memorandum enumerating the Criminal Division’s ten white collar enforcement priorities.
- The Tor dark web or onionland uses the traffic anonymization technique of onion routing under the network's top-level domain suffix .onion.
- Miners who successfully create a new block with a valid nonce can collect transaction fees from the included transactions and a fixed reward in bitcoins.
- Investigators stated Helix's application programming interface allowed marketplaces to integrate the mixer directly into their Bitcoin withdrawal systems, enabling large-scale laundering activity.
- Free markets are excellent for adoption because they don’t require bureaucracy, permits, regulations or any other form of permission to run.
- If you suspect illegal activity is happening on the dark web, you can report it to the authorities.
Bitcoin Cash Darknet Markets
- Informal value transfer systems accept money to make an equivalent payment to a third party in another location, possibly in a different form, outside the formal financial system.
- Our method identifies sellers, whereas buyers are entities which are not classified as sellers.
- Before the funds hit the user's account, they pass through KYT.
- On June 9, 2025, DOJ unsealed a 22-count indictment against Iurii Gugnin, the founder of the cryptocurrency payment company Evita.
The landscape of illicit online commerce has evolved significantly since the days of the Silk Road, with the rise of alternative cryptocurrencies carving out specialized niches. Among them, Bitcoin Cash (BCH) has emerged as a notable player in certain darknet market sectors, appealing to users who prioritize low transaction fees and faster confirmation times compared to Bitcoin (BTC). While BTC remains the dominant cryptocurrency for darknet transactions, BCH offers a distinct value proposition for vendors and buyers seeking to avoid network congestion and high costs, fostering a smaller yet persistent ecosystem of marketplaces.
Why Bitcoin Cash Appeals to Darknet Users
The intermediate resilience regime of the S2S network. The same pattern is observed in the whole S2S network (see Supplementary Information Section S5). Therefore, the S2S network appears to be more resilient than the multiseller network but less than the multibuyer network. However, unlike the multiseller network, the S2S network recovers during 2019 and 2020, but slower than the multibuyer network recovery. From 2012 to 2016, the largest component of S2S network continuously grows in number of nodes and connections, as shown in Fig. The largest component of the S2S network one year before and one year after the operation Bayonet.
The primary appeal of Bitcoin Cash on darknet markets stems from its technical characteristics. Unlike Bitcoin, BCH operates with a larger block size, enabling it to process a higher volume of transactions per second without the need for complex second-layer solutions. This translates to near-instant settlement and minimal fees, critical factors for vendors who must move funds quickly between wallets and exchanges. Furthermore, BCH maintains a degree of pseudonymity shared with other cryptocurrencies, though it is not inherently more private than Bitcoin. Users often pair BCH with coin mixing services or dedicated privacy wallets to obscure transaction trails, though this adds a layer of complexity that limits its broader adoption compared to more privacy-focused coins like Monero.
Notable Markets and Current Trends
While no single darknet market exclusively accepts Bitcoin Cash, several established platforms have integrated it as a secondary payment option. For example, marketplaces like White House Market (prior to its closure) and certain newer forums often list BCH alongside BTC and Monero. These markets typically cater to vendors selling digital goods, such as counterfeit documents or software exploits, where the speed of BCH transactions is valued. However, the overall volume of BCH-denominated transactions on darknet markets remains a fraction of what BTC or Monero sees, partly due to liquidity issues: converting BCH to fiat currency or other assets can be harder on volatile or less-friendly exchange platforms. Recent enforcement actions against major BTC-related marketplaces have, however, driven a modest uptick in BCH adoption as some users seek diversification away from closely monitored assets.
Risks and Operational Challenges
Using Bitcoin Cash on darknet markets carries unique risks beyond legal consequences. The BCH network has faced occasional hashrate fluctuations and network splits (such as the Bitcoin Cash ABC vs. Bitcoin Cash Node fork), which can lead to transaction confusion or temporary instability. Vendors and buyers must also contend with the fact that BCH’s smaller user base means fewer tools for privacy—most standard BCH wallets lack built-in CoinJoin or stealth address features, forcing users to rely on third-party services that may be compromised. Additionally, law enforcement agencies have become adept at analyzing BCH blockchains, as its transparency is comparable to Bitcoin’s. To mitigate these issues, experienced users often combine BCH with VPNs, Tails OS, and manual mixing methods, though this reduces the convenience that initially drew them to the cryptocurrency.
Future Outlook
The future of Bitcoin Cash in darknet markets hinges on broader adoption and technological upgrades. If BCH integrates native privacy features, such as the proposed CashFusion protocol, it could challenge Monero’s dominance in the high-privacy segment. However, regulatory pressure and the continued preference for complete anonymity may keep BCH in a secondary role. For now, Bitcoin Cash serves as a pragmatic alternative for those who find Bitcoin too expensive or slow, carving out a niche within the darknet ecosystem that persists despite its limitations.
