Hydra Marketplace Transactions Reach $1.37 Billion in Cryptocurrency
Flashpoint and Chainalysis have released a joint report on the operations of the underground marketplace Hydra. Launched in 2015, Hydra was initially known as a platform for selling drugs, but over time it has expanded to offer a wide range of illegal goods and services, including stolen card data, fake documents, counterfeit money, hacking services, and more.
Researchers note that over the past three years, Hydra has grown by approximately 624% annually, making it one of the most popular criminal marketplaces today. The platform’s transaction volumes have also increased year over year. For example, in 2016, Hydra’s annual turnover was about $9.4 million, but it has now reached $1.37 billion per year.
Factors Behind Hydra’s Success
According to the researchers, Hydra’s success can be attributed to several factors. One key factor is the platform’s strict rules. Since the summer of 2018, for example, sellers must complete at least 50 successful transactions before they are allowed to withdraw funds. Additionally, sellers are required to have a wallet containing at least $10,000.
Cryptocurrency Exchanges and Transaction Processing
Most of the cryptocurrency exchanges processing Hydra’s transactions are so-called “high-risk” platforms that ignore Know Your Customer (KYC) regulations. According to the report, the majority of these exchanges are located in Russia, and only a small percentage of Hydra’s transactions go through cryptocurrency platforms associated with legitimate trade.
In total, more than 1,000 unique deposit addresses and transactions totaling over $7 million have been identified as likely connected to Hydra.
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