The Dark Web's Favorite Cryptocurrencies: Bitcoin, Monero, and Litecoin

Bitcoin (BTC)

As mentioned earlier, Bitcoin remains a popular cryptocurrency within dark web marketplaces. Additionally, numerous ransomware attackers prefer to receive their demanded ransoms in Bitcoin, as it enhances the difficulty of trancing payments (Rees, K., 2023). Nevertheless, this approach doesn't grant criminals complete anonymity. Every transaction conducted with cryptocurrencies like Bitcoins or Ethereum is documented on their respective blockchains. As previously noted, these blockchains are public, allowing anyone to access a blockchain explorer website and examine transaction histories. It's crucial to emphasize that your real name, address, phone number, and other sensitive details are not publicly displayed on the blockchain during transactions, however, the sending and receiving addresses are visible, and with some effort, the true identities can be unveiled through your public wallet address (Rees, K., 2022). Furthermore, many cryptocurrency trading platforms necessitate users to verify their identity by submitting a photo of their ID, passport, or driver's license before utilizing their services (KYC requirements).

Monero (XMR)

Recognizing the diminishing anonymity in Bitcoin transactions, cybercriminals have shifted their focus to Monero (Rees, K., 2023). Introduced in 2014, this cryptocurrency employs various technologies such as ring signatures and stealth addresses (temporary addresses used for single a transaction) to obscure transactions (Rees, K., 2022). Similar to Bitcoin, Monero has been found to be very popular among ransomware attackers for ransom payments, with some even proposing reduced amounts of victims opt for Monero, which likely stems from Moner's status as a privacy coin, offering enhanced anonymity (Rees, K., 2023). Alongside ring signatures, Monero integrated Ring Confidential Transactions, or RingCT, to conceal the amount of XMR sent in transactions (Rees, K., 2022). However, numerous prominent exchanges have removed Monero from trading lists due to criticism for non-compliance with Know Your Customer (KYC) requirements. However, adhering to this regulation would undermine the purpose of a privacy coin (Rees, K., 2022).

Litecoin LTC)

Litecoin closely mirrors Bitcoin in its design. However, Litecoin distinguishes itself by offering faster transaction times, allowing users to avoid extended waits for payment processing and verification (Rees, K., 2023). In a research conducted by Barysevich, A., & Solad, A. (2018), it was revealed that different cryptocurrencies are favored on two distinct sides of the Dark Web: Eastern European Dark Web (also referred to as Russian-speaking sites) and English-speaking sites. The findings indicated that Monero (XMR) emerged as the preferred choice on English-speaking sites, while Russian-speaking portals showed a preference for Litecoin (Barysevich, A., & Solad, A., 2018). This suggests that English-speaking portals prioritize cryptocurrencies emphasizing anonymity, whereas Russian sites prioritize faster transaction processing over anonymity concerns.

Figure 1: Bitcoin remains the preferred cryptocurrency, accepted in 100% of the cybermarkets on the Dark Web. However, alternative coins have been accepted on different sides of the Dark Web (Barysevich, A., & Solad, A., 2018, pp. 5).

References:

Rees, K. (2023). The top 5 cryptos used by cybercriminals on the dark web. MUO. https://www.makeuseof.com/top-cryptos-used-by-cybercriminals-dark-web/

Rees, K. (2022). Is cryptocurrency traceable? or should you use a privacy coin? MUO. https://www.makeuseof.com/is-cryptocurrency-traceable/

Barysevich, A., & Solad, A. (2018). Litecoin Emerges as the Next Dominant Dark Web Currency. Recorded Feature. https://go.recordedfuture.com/hubfs/reports/cta-2018-0208.pdf