Russian darknet markets processed $1.9 billion in Bitcoin between January and September 2025, using at least 20 regulated crypto exchanges with over 130 international licenses. Criminal networks bypassed AML and KYC checks through intermediaries.

Global Ledger’s investigation uncovered how darknet markets exploited regulated exchanges to launder funds. Kraken facilitated the largest volume of illicit transfers at $1.3 billion, followed by BlackSprut at $344 million. Omg!Omg! and other marketplaces also played significant roles in the transactions.

Darknet actors utilized over-the-counter brokers and peer-to-peer intermediaries to evade AML and KYC checks. Funds were funneled through exchanges worldwide, disguising the source of funds. Compliance reviews revealed indirect connections between regulated entities and illicit ecosystems.

Experts warn that cybercriminals exploit gaps in compliance systems, making it challenging for exchanges to detect criminal activities. Sophisticated laundering tactics involve splitting transactions into small fractions and routing them across multiple wallets before depositing into exchanges.

The U.S. Treasury Department’s sanctions on major Russian exchange Garantex last year impacted darknet payment behavior. Tether’s enforcement actions disrupted the market, prompting a shift away from stablecoins towards Bitcoin as the preferred darknet currency due to its censorship resistance.

Global Ledger aims to provide targeted disclosures to affected exchanges and regulators to enhance compliance and strengthen controls. The focus is on creating a safer ecosystem by raising awareness of exposure to illicit activities within the crypto industry.

Read more at Yahoo Finance: How Russian Darknet Markets Funneled $2B in Bitcoin Using Top-Tier Exchanges