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  • Incognito Market accused of cryptocurrency Exit Scam

    Recent investigations have uncovered allegations of fraudulent activities on the Incognito Market, a known darknet marketplace specializing in the sale of narcotics. This platform is estimated to hold a market value ranging between $10 million and $30 million. The central accusation is that the operators of Incognito Market have orchestrated an 'exit scam', effectively misappropriating cryptocurrencies such as Bitcoin (BTC) and Monero (XMR) deposited by its users.

    The suspicions surfaced when users reported being unable to execute withdrawals of BTC and XMR starting from March 5, raising alarms over the possibility of a deceitful scheme. Despite initial assurances from an administrator known as "Pharoah", who attributed the withdrawal difficulties to system upgrades, the persistence of these issues led to increased scrutiny.

    Further inquiry into the situation was bolstered by a post on Dread, a darknet-focused discussion platform, from a notable figure in the dark web security community. This post suggested that discussions with "Pharoah" had led to an attempt to silence criticism through bribery, a claim that adds credence to the suspicions of fraudulent activity.

    Investigations have uncovered instances where the platform disseminated false information to its user base. One such instance involved the platform's false announcement, regarding its support for Ethereum (ETH) and DAI stablecoin. 

    Incognito Market fake announcement

    The backdrop to these events is a notable increase in the valuation of cryptocurrencies, with Bitcoin achieving new heights beyond its previous record, and Monero experiencing a notable uptick in value. This context is important as it underscores the potential motivations behind the alleged exit scam.

    Further investigation revealed that Incognito Market misled vendors regarding data handling, falsely assuring them that their data would be automatically deleted.

    The administrators of Incognito Market have not only been accused of stealing users' cryptocurrency but are also allegedly threatening to release sensitive information unless a ransom is paid. The threatened release of data includes private messages, transaction details, and other sensitive user information, posing a significant privacy and security risk to affected individuals.

     Incognito Market

    This breach encompasses an extensive compilation of data, including 557,000 order records and 862,000 cryptocurrency transaction identifiers.

    As the situation unfolds, the digital community and law enforcement agencies are closely monitoring the developments surrounding Incognito Market.

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