The darknet community was rocked recently by the sudden exit scam pulled by Incognito Market, one of the most popular trading platforms. Incognito’s admins made off with an estimated $10+ million in Bitcoin and Monero stolen from user accounts and escrow.
As the dust settles, we at Torhunter.com have been analyzing what went wrong and what lessons darknet market users can take away from this unfortunate incident.
The Anatomy of an Exit Scam
In hindsight, there were red flags leading up to Incognito’s abrupt disappearance:
- Users reported issues withdrawing funds, while the market continued accepting new deposits
- Support tickets about missing balances went unanswered
- The market’s 2+ year age made it ripe for an exit scheme
As one user wisely noted, “Once you’re on any market that’s above 2 years existence, trade with caution to enable you cut-down on exit scheme losses.”
Interestingly, the scam’s timing coincided with a peak in Bitcoin’s price, suggesting the admins were waiting for the most profitable moment to strike. “They were definitely watching the BTC market with a magnifying glass,” observed another user. “Looks like they timed it just right.”
Lessons for Darknet Market Users
This harsh experience reinforces some key security practices:
- Never store coins in your market wallet. Withdraw to your own wallet ASAP after purchases.
- Diversify across multiple markets to mitigate risk.
- Use XMR when possible, as its price is more stable and less tempting for exit scams.
- Watch Bitcoin’s price as an indicator of potential exit schemes.
- Exercise caution with markets older than 2 years.
The Fallout and Future Landscape
With Incognito’s fall, many users are migrating to alternative markets like Nemesis or MGM Grand Market. But the darknet’s revolving door of markets opening and exit scamming is sure to continue.
The key is constant vigilance – using trusted forums to vet markets, verifying links at Torhunter.com to avoid phishing, encrypting communications, and never letting your guard down. Starting with small purchases from established vendors is also prudent.
We’ll be closely monitoring the reverberations from Incognito’s exit scam and keeping Torhunter readers apprised of new developments in the ever-shifting darknet landscape. Be safe out there, and never forget the cardinal rule: “Don’t trust, verify.”