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Germany busts international child porn site used by 400,000

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BERLIN (AP) - German prosecutors announced Monday they have busted one of the world's biggest international darknet market platforms for child pornography, used by more than 400,000 registered members.

Frankfurt prosecutors said in a statement together with the Federal Criminal Police Office that in mid-April three German suspects, said to be the administrators of the "Boystown" platform, were arrested along with a German user.

One of the three main suspects was arrested in Paraguay.

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They also searched seven buildings in connection with the porn ring in mid-April in Germany.

The authorities said the platform was "one of the world's biggest child pornography darknet market platforms" and had been active at least since 2019.

Pedophiles used it to exchange and darkmarket url watch pornography of children and toddlers, most of them boys, from all over the world.

Prosecutors wrote that they found "images of most severe sexual abuse of toddlers" among the photos and video material.

"The platform had several forums and chats - the illegal pictures and videos were kept in the forums; in the chats, the members could communicate," prosecutor Julia Bussweiler said.

"There were several language channels to facilitate the communication."

A German police task force investigated the platform, its administrators and users for months in cooperation with Europol and law enforcement authorities from the Netherlands, Sweden, Australia, the United States and darknet markets links Canada, the statement said.

The three main suspects were a 40-year-old man from Paderborn, a 49-year-old man from Munich and dark web market urls a 58-year-old man from northern Germany who had been living in Paraguay for best darknet market markets many years, the prosecutors' statement said.

They worked as administrators of the site and gave advice to members on how to evade law enforcement when using the platform for illegal child pornography.

A fourth suspect, a 64-year-old man from Hamburg, is accused of being one of the most active users of the platform having allegedly uploaded more than 3,500 posts.

Germany has requested the extradition of the suspect who was arrested in Paraguay.

No names were given in line with Germany privacy regulations.

After the raids in mid-April, the online platform was shut down.

Germany's top security official thanked the authorities for their success.

"This investigative success has a clear message: Those who assault the weakest aren't safe anywhere," German Interior Minister Horst Seehofer said.

"That's what investigators work for day and night, online and offline, globally."

"We'll do everything within our power to protect the kids from these disgusting crimes," he added.

___

Christoph Noelting in Frankfurt, Germany, darkmarkets contributed to this story.

The largest dark web market for illegal goods is no more

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Two of the three largest dark web darknet markets onion address are closed for business.

The Department of Justice and Europol announced Thursday that they have that served hundreds of thousands of customers trying to get their hands on illegal goods online.

While you or I can easily buy groceries, electronics and clothes online, when it comes to finding drugs, weapons and stolen identities, things can get a little more complicated. Merchants of contraband hide out on the dark web, . There, buyers and sellers are anonymous, and so is the currency, with most transactions happening through bitcoin.

AlphaBay alone had 200,000 customers and more than 40,000 sellers peddling illegal goods, making it the largest takedown for a dark web marketplace ever. The website had 100,000 listings for sale when the governments took it down. In comparison, , had 14,000 listings when the FBI shut down the site four years ago. Hansa was the third largest dark web darknet market when it shut down.

"I believe that because of this operation, the American people are safer from the threat of identity fraud and malware, and safer from deadly drugs," attorney general Jeff Sessions said at a press conference Thursday. He called the bust one of the "most important criminal cases" of the year.

The website made $1 billion in sales before it was shut down in a joint operation of the FBI, the Drug Enforcement Agency, Dutch police and Europol. 

"They coordinated a takedown and have punched a big hole in the operating ability of drug traffickers and other serious criminals around the world," Europol director Rob Wainwright said.

Visitors first noticed AlphaBay was down on July 5, when Alexandre Cazes, better known as Alpha02, the website's creator and admin, was arrested in Thailand. On July 12, dark web link he was found dead while in custody there, in an apparent suicide. Frequent AlphaBay users were concerned that the shutdown was an "exit scam," in which a market owner takes the money and dark market list runs.

"The operation at AlphaBay was well run and sophisticated, and it struck me as highly unlikely that the darknet market would go down as an exit scam with anything other than calculated precision," Emily Wilson, the director of analysis at Terbium Labs said, in an email.

Terbium Labs had been following the dark web for months, specifically in marketplaces like AlphaBay. After the fallout in early July, Wilson said former moderators and well-known users were left in confusion.

After AlphaBay's shutdown, its users flocked to Hansa, increasing the dark darknet market's traffic in eightfold, Wainwright said. Dutch police took over Hansa last month and have been collecting thousands of user's information in an undercover operation.

Wainwright said officers are tracking down Hansa buyers and sellers through their usernames and passwords.

But that's just one chapter in the fight against illegal online transactions. Just as AlphaBay rose and became 10 times larger than , FBI deputy director Andrew McCabe predicts there will be another dark web darknet market to fill the void.

"There are some criminals that think of cybercrime as a freebie," McCabe said. "They think they will get away with it because there are too many players and too many countries, they think they will get away with it because the schemes are too complex and because they operate in the shadows."

: Check out a sample of the stories in CNET's newsstand edition.

: A crowdsourced science fiction novel written by CNET readers.

The Dark Web | Black Market Trade | Illegal Activities | Documentary

Bitcoin proves double-edged sword for criminals

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US authorities have said they were able to access the 'private key' to the hackers' bitcoin account of ransomware hackers Darkside

Regulators have repeatedly criticised the growth of cryptocurrencies such as bitcoin because of their popularity with criminals but the technology's transparent transactions can also work against law breakers.

The lesson is one that has been learnt by cybercriminal hackers Darkside the hard way after the organisation extracted a $4.4 million ransom from oil company Colonial Pipeline in bitcoin.

Following the ransomware extortion, which forced the shutdown of a major fuel network in the eastern United States last month, the US Justice Department said it has clawed back $2.3 million of the funds by tracing financial transactions.

"Following the money remains one of the most basic, yet powerful, tools we have," US Deputy Attorney General Lisa Monaco said on Monday.

The financial forensics to track crypto transactions are more complex on the decentralised and anonymous networks.

For a traditional bank payment, police can turn to the bank that sent or darknet market markets onion address received the money but for bitcoin, darknet markets onion address the registry that records these transactions -- the blockchain -- does not ask users to reveal their identity.

But the blockchain is also public and available to everyone to download and piece together who might own the anonymous addresses where the bitcoin arrives.

While some users keep their bitcoin safe in an offline wallet, for example on a USB stick or hard drive, Darkside's bitcoins were always linked to an online account.

Without specifying how they came by it -- whether by hacking or through an informant -- US authorities have said they were able to access the "private key" to the hackers' online account.

In 2019, darknet market list analysis of the blockchain enabled British and American authorities to dismantle a child pornography ring and arrest more than 300 people in 38 countries.

The complex tracking of transactions has become an industry in its own right.

Firms specialising in blockchain analysis have developed, such as Chainalysis in the United States and Elliptic in Britain.

- Russian Hydra -

According to a Chainalysis report released in February, cryptocurrency transactions for illegal purposes reached $10 billion in 2020, one percent of total cryptocurrency activity for the year.

In 2019 criminal activity using the online currencies reached a record $21.4 billion.

The total cost of ransomware payments alone made in cryptocurrencies soared to nearly $350 million in 2020.

"Cryptocurrency remains appealing for criminals, primarily due to its pseudonymous nature and the ease with which it allows users to instantly send funds anywhere in the world, " Chainalysis said.

The US Justice Department said it has clawed back $2.3 million of the funds Darkside received from Colonial Pipelines by tracing financial transactions

Elliptic analysts believe they have identified the bitcoin wallet that received the ransom payment from Colonial Pipeline to Darkside, and found that at least one other payment of $4.4 million.

More importantly, analysis of the transactions can identify the bitcoin sales platforms that received the wallet's ill-gotten funds.

"This information will provide law enforcement with critical leads to identify the perpetrators of these attacks," Elliptic researcher Tom Robinson wrote.

darknet market regulators have put pressure on cryptocurrency exchange platforms.

Many, such as Coinbase, now require users to disclose their identity before making transactions. But other platforms are not following the same rules.

Both Elliptic and Chainalysis point to the growing role of Hydra, a sales site for Russian-speaking customers, which is accessible via the darknet markets onion, a version of the web not listed on search engines and darkmarket link where users can remain anonymous.

"Hydra offers cash-out services alongside narcotics, hacking tools and fake IDs," Robinson explained.

Using sites like Hydra in conjunction with cryptocurrencies, Darkside's hackers have reportedly already resold some of the ransomed bitcoins.

As the price of bitcoin has soared in recent months regulators are adapting their strategies.

The Bank of England said on Monday that payments in stablecoins, fixed-price cryptocurrencies, should be regulated to the same standards as bank payments.

Crocodile of Wall Street hilariously bad raps granted bail at $3m

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It appears the self-proclaimed 'Crocodile of Wall Street', Heather Rhiannon Morgan, 31, who was granted $3million bail on Wednesday, led a second life a hipster New York rapper who performs under the street name Razzlekhan.

In a series of cringey videos posted to YouTube, the wannabe performer can be seen walking around Wall Street while reciting lyrics such as: 'I'm many things, a rapper, an economist, a journalist, a writer, a CEO, and a dirty, darknet market darknet markets url 2024 dirty, dirty dirty h*'. 

Morgan's music videos, including the 2019 single Versace Bedouin, are all on her YouTube page together with various unboxing videos. The page has been made private since her arrest.

She and her husband Ilya '' Lichtenstein, 34, who had bail set at $5million were both arrested for allegedly laundering $4.5billion in  stolen in the 2016 Bitfinex exchange hack. 

The pair were arrested on Tuesday in Manhattan on federal charges of conspiracy to commit money laundering and conspiracy to defraud the United States. 

But when Morgan wasn't allegedly shifting around billions of dollars in the world of cryptocurrency, she was taking to the mic and darknet market lists shooting rap videos. 

One website which decided to wade through all of the footage suggested 'Laundering billions in Bitcoin may not even be the worst crime of her life.' 

'When she's not reverse-engineering black markets to think of better ways to combat fraud and cybercrime, she enjoys rapping and designing streetwear fashion,' her  states. 

Photos of self proclaimed 'Crocodile of Wall Street' Heather Morgan who was arrested in New York over an alleged Bitcoin hack. Photos of Morgan were taken in June 2020

Heather Morgan, 31, who calls herself the 'Crocodile of Wall Street' (hence the croc picturedin her hand) also spends time creating low-budget rap videos and posing for quirky photoshoots 

Morgan was arrested on Tuesday in Manhattan, together with her husband, tor drug market on federal charges of conspiracy to commit money laundering and conspiracy to defraud the United States

WARNING: EXPLICIT LYRICS 

Morgan, who raps under the name Razzlekhan, (seen in front of Federal Hall on Wall Street in a music video) declared herself the 'Crocodile of Wall Street' in one of her rap songs

In this courtroom sketch, attorney Sam Enzer, center, sits between Heather Morgan, left, and her husband, Ilya 'Dutch' Lichtenstein, in federal court on Tuesday

The August 2016 Bitfinex hack itself was one of the largest crypto heists ever recorded - so massive that news of the theft knocked 20 percent off Bitcoin's value at the time. 

Lichtenstein and Morgan are thus far not charged directly with perpetrating the hack, but rather with receiving and laundering the stolen funds. The case was filed in a federal court in Washington, D.C.

It was unclear who will be representing the couple in the criminal case and whether they had an attorney to speak on their behalf.

They were due to appear in federal court in Manhattan at 3pm on Tuesday. 

The couple is accused of conspiring to launder 119,754 bitcoin that was stolen, after a hacker attacked Bitfinex and initiated more than 2,000 unauthorized transactions.

Morgan, a rapper and former Forbes contributor, describes herself as 'an expert in persuasion, social engineering, and game theory'

The couple is accused of conspiring to launder 119,754 bitcoin that was stolen, after a hacker attacked Bitfinex and initiated more than 2,000 unauthorized transactions

Justice Department officials said the transactions at the time were valued at $71 million in Bitcoin, but with the rise in the currency's value, it is now valued at over $4.5 billion.

'As the complaint alleges, the FBI and federal prosecutors were able to trace the movement of Bitcoin from this hack,' said Matthew Graves, the U.S. Attorney for the District of Columbia.

He added that the money moved through a major darknet market exchange tied to a host of crimes, as well as cryptocurrency addresses tied to child sexual abuse materials.

Lichtenstein and darknet markets onion Morgan are facing charges of conspiring to commit money laundering, as well as to defraud the United States.

Prosecutors said on Tuesday the illegal proceeds were spent on a variety of things, from gold and non-fungible tokens to 'absolutely mundane things such as purchasing a Walmart gift card for $500.'

Bitfinex said in a statement that it was to working with the Department of Justice to 'establish our rights to a return of the stolen bitcoin.'

'We have been cooperating extensively with the DOJ since its investigation began and will continue to do so,' the company said. 

Bitfinex said it intends to provide further updates on its efforts to obtain a return of the stolen bitcoin as and when those updates are available. 

Tuesday's criminal complaint came more than four months after Monaco announced the department was launching a new National Cryptocurrency Enforcement Team, which is comprised of a mix of anti-money laundering and cybersecurity experts.

The August 2016 Bitfinex hack itself was one of the largest crypto heists ever recorded - so massive that news of the theft knocked 20 percent off Bitcoin's value

Lichtenstein and Morgan are facing charges of conspiring to commit money laundering, as well as to defraud the United States

Morgan is seen rapping with the New York Stock Exchange behind her to the right

Cyber criminals who attack companies, municipalities and individuals with ransomware often demand payment in the form of cryptocurrency.

In one high-profile example last year, hackers caused a widespread gas shortage on the U.S. East Coast when by using encryption software called DarkSide to launch a cyber attack on the Colonial Pipeline.

The Justice Department later recovered some $2.3 million in cryptocurrency ransom that Colonial paid to the hackers.

Cases like these demonstrate that the Justice Department 'can follow money across the blockchain, just as we have always followed it within the traditional financial system,' said Kenneth Polite, assistant attorney general of the department's Criminal Division. 

Justice Department officials say that though the proliferation of cryptocurrency and virtual currency exchanges represent innovation, the trend has also been accompanied by money laundering, ransomware and other crimes

'Toda'´s arrests, and the Department's largest financial seizure ever, show that cryptocurrency is not a safe haven for criminals,' Deputy Attorney General Lisa Monaco said in a statement. 

'In a futile effort to maintain digital anonymity, the defendants laundered stolen funds through a labyrinth of cryptocurrency transactions. Thanks to the meticulous work of law enforcement, the department once again showed how it can and will follow the money, no matter the form it takes.'  

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