Russia sentences Hydra market founder to life in prison

As a researcher with a keen interest in the intersection of technology and criminal activities, I have followed the rise and fall of Hydra with a mix of fascination and horror. The sheer scale of its operations, estimated to have taken in over $5 billion worth of crypto during its existence, is mind-boggling.

The creator of Hydra, an online illicit marketplace and cryptocurrency blending platform that handled more than $5 billion in digital currency transactions, has received a life sentence from a Russian court.

In a declaration on December 2nd, the Moscow Prosecutor’s Office reported that Moiseev and 15 of his associates were convicted by the Moscow Regional Court for setting up a criminal network and unlawfully manufacturing and distributing psychotropic substances and drugs.

Sentences handed down to Moiseev’s 15 accomplices varied from 8 to 23 years.

As a crypto investor, I found myself on the wrong side of the law and was fined a hefty sum of $38,100 (4 million rubles), while my 15 associates were also hit with penalties totaling approximately $152,400 (16 million rubles). We certainly learned a costly lesson in this crypto adventure!

Properties and vehicles tied to the convicted were also seized as part of their sentencing orders.

As a crypto investor, I’ve learned that individuals involved in crypto-related activities may face stringent penalties, such as serving their sentences within the confines of corrective facilities, according to reports from Russian state-owned media outlet TASS. In simpler terms, if they break the rules, those involved will be subjected to a rigorous set of regulations while imprisoned.

Back in 2021, I was part of a vast, shadowy network where Hydra, the largest darknet marketplace, dominated with an impressive 80% share of all crypto transactions associated with the darknet. From its inception in 2015 up until its shutdown in 2022, this platform amassed a staggering $5.2 billion in cryptocurrencies. These findings were revealed by the United States Justice Department.

In my role as an analyst, I’m compelled to point out that my investigations often led me to a notoriety associated with the trading of illicit goods such as stolen credit card data, counterfeit currencies, and fabricated identity documents.

The trading volumes of Hydra’s cryptocurrency on exchanges increased by an impressive 624% annually between 2018 and 2020, as reported in May 2021. This surge is attributed to Hydra’s growing complexity in criminal activities, according to the findings of blockchain security firm Flashpoint. Notably, Flashpoint has collaborated with TRM Labs since then.

In April 2022, German authorities took over a Bitcoin (BTC) service that was based in their country, along with its servers. This service reportedly had approximately 17 million customers and 19,000 vendor accounts. Simultaneously, they confiscated nearly a metric ton of illegal narcotics and psychotropic substances as part of their enforcement actions.

Hydra had been investigated by Russia’s Ministry of Internal Affairs since 2016.

The following individuals were found guilty by the other members of Hydra: Alexander Chirkov, Andrei Trunov, Evgeny Andreev, Ivan Koryakin, Vadim Krasninsky, Georgy Kierobiani, Artur Kolesnikov, Nikolai Bilyk, Alekandr Kabalina, Mikhail Dombrovkogo, Alexander Aminova, and Sergey Czech.

The sentences are subject to appeals.

In the year 2023, illicit online marketplaces known as Darknets generated at least $1.7 billion in income – a figure that increased compared to the previous year when Hydra was closed down, as per a study published earlier this year by Chainalysis.

2024-12-04 05:40

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