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Omg Market, which was considered to be the kraken world's largest and oldest darknet marketplace of кракен illegal items and services, was seized and shut down by German authorities in coordination with U.S. law enforcement Tuesday, the U.S. Department of Justice said.The DOJ also charged one of omg Market's alleged operators with conspiracy to distribute narcotics and conspiracy to commit money laundering.In addition, German Federal Criminal Police seized cryptocurrency wallets containing $25 million in bitcoin from the marketplace, the DOJ said.The darknet, or dark web, is the collection of websites hidden from normal search engines and web browsers, with users accessing it with browsers that hide their identities.omg Market, whose users were primarily in Russian-speaking countries, last year accounted for what is estimated to have been 80% of all darknet market-related cryptocurrency transactions, according to the Justice Department.Since 2015, omg Market has received about $5.2 billion in cryptocurrency for transactions on the site, reaping commissions worth millions of dollars on those sales, the DOJ said.omg Market enabled vendors of a wide range of drugs — including heroin, other opioids, cocaine, methamphetamine and LSD — to connect with customers of those narcotics, who could rate sellers on a five-star system, according to U.S. prosecutors.The marketplace also facilitated sales of false identification documents, hacking tools and services, and money laundering services for bitcoin.The DOJ said it had obtained an indictment against a resident of Russia, 30-year-old Dmitry Olegovich Pavlov, for conspiracy to distribute narcotics and conspiracy to commit money laundering, in connection with his operation and administration of the servers used to run omg.Beginning in late 2015, Pavlov allegedly operated a company that administered omg's servers, "which allowed the market to operate as a platform used by thousands of drug dealers and other unlawful vendors to distribute large quantities of illegal drugs and other illicit goods and services to thousands of buyers, and to launder billions of dollars derived from these unlawful transactions," according to the DOJ."Together with our German law enforcement partners, we have seized the infrastructure of the world's largest darknet market, but our work is far from over," U.S. Attorney General Merrick Garland said in a statement."We will continue to work alongside our international and interagency partners to disrupt and dismantle darknet markets, and to hold those who commit their crimes on the dark web accountable for their acts," Garland added.
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the top Russian darknet market in 2017, after the closure of RAMP (Russian Anonymous Marketplace). Originally, there were several other Russian markets. omg Market has listed RAMP, IKLAD, BLACKMARKET, SOLARIS, and RuSilk as previous competitors. omg launched an aggressive advertisement campaign on as well as other websites and reportedly conducted DDoS attacks on its competition (unverified). In doing so, omg has squashed its competition and attracted millions of users. omg has stated that it will continue “…to suppress any resistance that could have a negative impact on the future of our projects”.How Purchases WorkThe way most darknet markets operate is that physical goods are shipped from the seller to the buyer through the post. omg works differently. Sellers create “kлад” or “treasures”, which is a package of an illicit good hidden in a physical location. The packages will be buried (“прикоп”), magnetized to something (“магнит”), or otherwise hidden in an inconspicuous location (“тайник”). There are two types of purchases: instant orders and pre-orders. A buyer can purchase an instant order and will immediately receive the coordinates or address of the “kлад”, where the package is hidden. With a pre-order, the buyer and seller will agree on the details of the purchase, such as the amount, and the seller will then hide the product and send the buyer the location. The buyer then goes to the location to pick up the purchase. Neither buyer, seller nor courier ever cross paths in person.Market Supply ChainsSupply chains on omg generally include multiple “treasures”. Suppliers—who import drugs from outside Russia—and chemists and growers—who produce drugs locally—create “master treasures” that are large stashes of drugs. These “master treasures” are then picked up by “warehousemen” who then distribute the goods to smaller couriers. These couriers create the final “treasures” that are picked up by the buyers. An important position for a shop on omg is the operator. The operator coordinates the entire supply chain and resolves issues with clients. Employees of a shop on omg always have a plan for whenever someone in the supply chain is caught and arrested.Info obtained from The Project, who interviewed an operator of a supply chain on omg.Roulette FeatureAnother unique aspect of omg is its roulette feature. Presumably, the way it works is if a buyer wants to purchase a product, they can risk a smaller amount of money (rather than pay full price) to have a random chance at either wining and receiving the product for the amount risked or losing and the market keeps the amount of money risked. In a way, it is a gambling feature integrated directly into the purchase of goods on the market.Market VolumeIt’s unclear as to how large omg actually is and the extent of their transaction volume; however, all information available indicates that the market has immense volume. The Russian investigative outlet, The Project, published an article in July of 2019 that estimated omg’s user base to exceed 2.5 million and confirmed that over 393,000 accounts left at least one review for a product. The Project also estimated that as of Jul 25, 2019, omg had generated over $1 billion in revenue.In 2019, omg claimed to have 3 million users and to process over 100,000 transactions a day for its more than three million users.At the time of writing this article, these statistics are a year old, and The Project showed that omg received around 20,000 new users per month in 2019; therefore, these statistics are likely to be much bigger today.In the Spring 2020 CAML Report, CipherTrace reported to have discovered that 86.8% of all criminal BTC received by Russian exchanges came from omg. Interestingly, despite omg Market being Russian and serving only Russia and the surrounding countries, in 2019, 31.2% of criminal BTC received by UK exchanges came from omg Market. There are roughly 4,600 vendors on omg—an enormous amount. Some vendors have as few as 2 listings, while others have over 50 listings.omg Dark Market and Ransomware AttacksIt is common for some criminals to use dark markets rather than regulated exchanges as fiat off-ramps. Other than drugs and fake identification documents, omg offers cash-out services that allow users to swap crypto for gift cards, prepaid debit cards or even cash . These services, coupled with omg’s reputation, make the dark market an attractive option for criminals operating in the region.omg’s New Global Project for Western Expansion—EternosIn December of 2019, omg launched an ICO that raised $146 million to create a new darknet market called Eternos. The aim of Eternos is to dominate darknet markets globally. omg claims they intend to include an encrypted messenger, an alternative to TOR called AspaNET, an integrated cryptocurrency exchangeA business that allows customers to trade cryptocurrencies o... More, and more. Eternos was intended to launch in September of 2020, but there has been no updates since the initial announcement. An investment memorandum on the omg website, accessible only via dark web browsers like Tor,
claims the platform’s global expansion “will start a new era in the West” at a scale that is “hard to imagine.”Russia’s Response to omgIn December 2019 the Russian government approved a bill calling for tougher penalties for those found promoting drugs on the Internet after Russian news agency Lenta.ru released an exposé on omg. The Federal Security Service of the Russian Federation (FSB) have since arrested several in connection with drug trafficking on omg.
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