Darknet Market Operators Threaten User Data Leak After Exit Scam

Following the alleged 'exit scam' by the Darknet Market (DNM), multiple reports have emerged indicating that its operators are now resorting to extortion tactics. Users of Incognito have been alerted by the operators claiming to have access to transaction logs and archived conversations involving crypto assets. The operators are demanding payment and have warned that failure to comply will result in the information being disclosed to law enforcement authorities.

In a recent turn of events, the Darknet Market (DNM), also known as Incognito, has transitioned from executing an exit scam, as reported last week, to resorting to extortion tactics. Allegedly, DNM absconded with significant amounts of bitcoin (BTC) and monero (XMR), following a pattern observed since the early days of DNMs, reminiscent of the infamous Silk Road.

Typically, an exit scam involves the abrupt cessation of DNM operations, with administrators disappearing along with the funds held in escrow. However, in this case, Incognito's administrators have resorted to coercing money from users and vendors who frequented the platform.

A message from "Pharoah," an Incognito Market admin, has circulated, suggesting a continuation of their presence despite the exit scam. The message ominously warns users of a final surprise.

It read, "Expecting to hear the last of us yet? We got one final little nasty surprise for y’all. We have accumulated a list of private messages, transaction info, and order details over the years."

"You’ll be surprised at the number of people that relied on our "auto-encrypt" functionality. And by the way, your messages and transaction IDS were never actually deleted after the expiry," the Incognito Market admin said. "….SURPRISE SURPRISE!!! Anyway, if anything were to leak to law enforcement, I guess nobody ever slipped up."

The operator of Incognito revealed the scale of information at risk, including a comprehensive dump of 557,000 orders and 862,000 cryptocurrency transaction IDs. The extortion note implies that the users' information included in this dump depends entirely on their actions.

It states, "Whether or not you and your customers’ info is on that list is totally up to you."

To further complicate matters, reports suggest that a whitelist portal will be established, allowing purchasers to potentially erase their records. Ironically, amidst these threats, the administrator expresses "gratitude" towards customers and vendors for their involvement with Incognito Market, a sentiment that clashes starkly with their current extortion tactics.

This mass extortion of users follows reports of numerous individuals being unable to withdraw funds from their buyer or seller accounts just days earlier. According to a cryptocurrency-focused publication CoinTelegraph, on March 6th, Incognito was accused of exit-scamming users out of their Bitcoin and Monero deposits. Initially, Incognito Market administrators allegedly misled users, attributing the withdrawal issues to recent changes in the platform's withdrawal systems. Given the Incognito Market's primary focus on narcotics, many users are understandably concerned about their potential exposure to drug dealers.